Mortgage Loans

Vocabulary: Down payment: an initial payment made when something is bought on credit. Mortgagor: the borrower in a mortgage, typically a homeowner. Mortgagee: the entity that lends money to the borrower against the security of property. Collateral: something offered as security for repayment of a loan. To purchase outright: Without borrowing money in one payment. Foreclosure: the action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments. Repossession: the action of retaking possession of something, in particular when a buyer defaults on payments. Amortization: a period in which a debt is reduced or paid off by regular payments.