What is a mortgage?
A mortgage is a loan secured by real property, giving the lender a claim if payments stop.
Why it matters
It lets buyers purchase with borrowed money, but the home secures the debt.
Common confusion
The mortgage is the loan; the promissory note is the promise to repay it.
Frequently Asked Questions
What happens if I miss payments?
The lender can start foreclosure after a grace period set by state law.
Is the mortgage recorded?
Yes, it is recorded so the lien is public and binds later buyers.
Can I pay it off early?
Usually yes, though some loans have prepayment penalties.