By simple definition, a mortgage is a type of loan you can use to buy refinance or remodel a home, a way to buy property without having all of the cash up front. Thus, a mortgage loan is a loan for which a property serves as collateral by notarial deed. The basis for a mortgage loan is the collateral and security in which the lender has to claim repayment of the particular loan.
There is such a thing as a right of mortgage, and this claim is surely privileged by it and established by notarial deed. This empowers the lender to recover a loan from the proceeds of the sale of the property by priority, therefore before other creditors. The owner of a property that confers the right of mortgage is known as the mortgagor. His lender, PFTSA, who is granted the right of mortgage, is known as the mortgage holder.
A mortgage is a loan provided by a mortgage lender or bank that enables an individual to purchase a home or property. It is possible to take out loans that cover the entire cost of a home at the execution value, yet it’s more common to secure a loan for about 80% of the home or property’s value, known as the market value.