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Mortgagor-is the owner of real property who grants a mortgage to a lender in exchange for the money to purchase the property. The mortgagor pledges to repay the loan under specific terms and conditions and are subject to foreclosure if they fail to do so.
Mortgagee-Is the lender in a mortgage agreement.
Usually refers to the party who lends money and receives a mortgage. In some states the lender is treated as the “legal owner” (deed of trust) and may be entitled to rents from the property if it is abandoned by the homeowner. Other states treat the mortgagee as a “secured creditor” with the mortgagor considered to be the owner.
Adjustable Rate Mortgage (ARM)-is a mortgage loan, which gives the lender the right to adjust it interest rate at regularly scheduled intervals on the basis of changes in a specified index. The borrower mortgage must state how often the rate can change as well as set a cap for how high the rate may be increased. You should avoid an adjustable rate mortgage unless you feel certain your income is going to increase sufficiently to allow you to make higher mortgage payments at a later date.
You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
Mortgagee-Is the lender in a mortgage agreement.
Usually refers to the party who lends money and receives a mortgage. In some states the lender is treated as the “legal owner” (deed of trust) and may be entitled to rents from the property if it is abandoned by the homeowner. Other states treat the mortgagee as a “secured creditor” with the mortgagor considered to be the owner.
Adjustable Rate Mortgage (ARM)-is a mortgage loan, which gives the lender the right to adjust it interest rate at regularly scheduled intervals on the basis of changes in a specified index. The borrower mortgage must state how often the rate can change as well as set a cap for how high the rate may be increased. You should avoid an adjustable rate mortgage unless you feel certain your income is going to increase sufficiently to allow you to make higher mortgage payments at a later date.
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You can find more helpful definitions of WORDS like these in Your Real Estate Advisor which can be purchased at www.DovePublishingHouse.com.
(Please E-mail Heather at homeownershipmatters@gmail.com with any questions, comments or concerns you might have! We appreciate all comments and feedback, so please don't be shy.)
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