Mortgage Lending 

A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.

What Is Mortgage Lending?

The lender lends money to a borrower and profits by charging interest and fees as well a mortgage or a lien is placed on the borrower’s property until the debt is repaid a mortgage does two things. First it stops the property from being sold without repaying the loan, second if the borrower defaults on the loan the lender can then try to recoup its capital by seizing her property and selling it for clarity. A mortgage is not alone it’s a legal instrument that is used to protect a loan for instance imagine that you lend me a hundred thousand dollars we sign a loan agreement or a promissory note with the following conditions one it’s a two year loan but I can repay you earlier to the annual interest rate is 10 percent payable monthly 3 you can register a mortgage on my house, if I don’t pay you back as per our agreement