What is a mortgage?

The Merriam-Webster dictionary defines mortgage "as a conveyance of or lien against property (as for securing a loan) that becomes void upon payment or performance according to stipulated terms". A mortgage can also be "the instrument evidencing the mortgage, the state of the property so mortgaged" or "the interest of the mortgagee in such property."

The bottom line is that the bank is loaning you money to buy a home.  They have a lien ( a right to the property) if you don't pay them as you promised according to the terms of the mortgage.  The bank wants you to keep insurance on the house and keep it maintained.

Make the payments on time and keep the bank happy.  The bank doesn't want your house.  They lose money when a home goes into foreclosure.  They want to make the money on the interest that you pay them each month.  Though they will take your house if you do not keep up with the payments.  That's the bottom line.
   
Some other definitions:

• A mortgage (French for "dead pledge") is a device used to create a lien on real estate by contract. It is used as a method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. The borrower (also called the mortgagor) uses a mortgage to pledge real property to the lender (also called the mortgagee) as security against the debt (also called hypothecation) for the rest of the value of the property.
• Debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan. 
• The pledge of a property to the lender as security for payment of a debt.
• A written pledge of property that is used as security for the repayment of a loan.
• A loan to purchase a home, where the property is used to guarantee repayment of the loan. 
• A legal document by which real property is pledged as security for the repayment of a loan; the pledge is canceled when the debt is paid in full.
• A lien on the property that secures the Promise to repay a loan.
• A loan for a house. Also referred to as a lien or claim against real property.
• Legal agreement on the terms and conditions of a loan for the purpose of buying real estate. (A Mortgagee lends the money to a mortgagor, the borrower). 
• A pledge of real estate as security for the payment of a debt. 
• A document signed by a borrower when a home loan is made that gives the lender a right to take possession of the property if the borrower fails to pay off the loan.
  
  

One of the major reaons that the homebuying experience is fraught with anxiety and problems for millions of people is that they are not only buying a house, they are also wrestling with the mortgage process. For some folks - people with cash reserves, high-end incomes and perfect credit - obtaining a mortgage is easy, if they need one at all. For others, obtaining the right mortgage can make all the difference in not only being able to acquire a home, but also staying there as long as they want without financial worry.