Definition

Mortgage

A mortgage is a special kind of credit, usually longer-term in duration, used to finance the construction or purchase of property or a long-lasting structure (such as a home or building).

Webster Dictionary Meaning

1. Mortgage
- A conveyance of property, upon condition, as security for the payment of a debt or the preformance of a duty, and to become void upon payment or performance according to the stipulated terms; also, the written instrument by which the conveyance is made.
- State of being pledged; as, lands given in mortgage.
2. Mortgage
- To grant or convey, as property, for the security of a debt, or other engagement, upon a condition that if the debt or engagement shall be discharged according to the contract, the conveyance shall be void, otherwise to become absolute, subject, however, to the right of redemption.
- Hence: To pledge, either literally or figuratively; to make subject to a claim or obligation.
Category: Economics
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