A debt instrument that is secured by the collateral of specified real estate property and that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large purchases of real estate without paying the entire value of the purchase up front.
Such institutions that offer Mortgages are Banks and Credit Unions. The monthly payments on the Mortgage amount is usually determined by the length of the repayment term, the amount borrowed and the age of the borrower.
Mortgages are also known as "liens against property" or "claims on property."
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