Mortgagor Meaning: Definition, Examples, and Translations
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mortgagor
[หmษหษกษชdสษr ]
Definition
Context #1 | Noun
real estate
A mortgagor is a person who borrows money from a lender to purchase a property and pledges the property as security for the loan.
Examples of usage
- The mortgagor signed the loan agreement with the bank.
- If the mortgagor fails to make payments, the lender can foreclose on the property.
- The mortgagor must maintain insurance on the property as part of the loan agreement.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Finance
- In a mortgage agreement, the mortgagor retains rights to the property as long as they keep up with payments.
- If a mortgagor fails to pay, the lender can initiate foreclosure, taking ownership of the property.
- Mortgagors generally have to provide a down payment, which is a percentage of the property price paid upfront.
Legal Aspects
- Mortgagors are bound by the terms of their mortgage contract, which outlines their obligations and rights.
- In many countries, bankruptcy laws provide certain protections for mortgagors, allowing them to keep their homes under specific conditions.
Cultural Perspectives
- In many cultures, homeownership is viewed as a significant milestone, often essential to social status and financial stability.
- The concept of borrowing for property is common globally, though specific practices vary greatly between different legal systems.
Real Estate
- Mortgagors often face various options for interest rates, including fixed and adjustable rates, influencing their overall loan cost.
- The housing market impacts mortgagors directly; in times of rising prices, their property can appreciate in value, but they may also struggle with affordability.
Origin of 'mortgagor'
Main points about word origin
- The word 'mortgagor' comes from Old French, combining 'mort' meaning 'dead' and 'gage' meaning 'pledge.' This reflects that the debt is 'dead' if not paid back.
- The use of 'mortgage' dates back to the 13th century, evolving from terms relating to a pledge that becomes void upon fulfillment or failure.
The term 'mortgagor' originated from the Latin word 'mortuus', meaning 'dead', and 'gฤg-,' a combining form of 'gฤg-', meaning 'to give, to engage'. In the 15th century, it was used in English law to refer to a person who pledged property as security for a loan. Over time, the term evolved to its current usage in real estate transactions.