understand the obligation that you are getting into the commitment and what will be required of you.
Definition of a Mortgage
A mortgage arises when a person leases his land as a security for loans. The financial institution or individual that lends money and takes land as security has therefore created a mortgage.
There is generally a mistaken impression that a mortgage only refers to a loan for the purpose of buying or building a house. This is too narrow a definition. Mortgage refers, not to the purpose of the loan, but to the security that is offered. For example, if someone takes a loan to send a child to study and offers Title as security, then he/she has given you a mortgage. Also if someone takes a loan to go on vacation and gives you a Title as security for this loan, then a mortgage has arisen.
The lender or the financial institution who accepts your Title as security and provides the funding is referred to as the Mortgagee.
The individual who borrows the money and who creates the mortgage by offering his land Title as security is called the Mortgagor.