Definition

Noun: A sum of money borrowed from a financial institution, specifically for the purpose of purchasing real estate (such as a house or land). The property itself is used as collateral to secure the loan, meaning the lender has the right to take possession of it if the borrower fails to repay the debt according to the agreed terms. This type of loan is typically long-term.

Usage

A "mortgage loan" is the specific financial agreement for buying property. It is a formal term used in banking, real estate, and legal contexts. - It is used as a countable noun. - It often appears with verbs like get, take out, apply for, secure, repay, and default on. - It is commonly modified by adjectives describing its type (e.g., fixed-rate, adjustable-rate, residential, commercial) or its status (e.g., new, outstanding, delinquent).

Examples

• Noun:
  • They took out a mortgage loan to buy their first home.
  • The bank approved the mortgage loan after verifying their income and credit history.
  • The interest rate on her mortgage loan is very favorable.
  • Defaulting on a mortgage loan can lead to foreclosure.

Advanced Usage

• "to be underwater on a mortgage loan": To owe more money on the loan than the current market value of the property.
  • After the housing market crashed, many homeowners found themselves underwater on their mortgage loans.
• "to refinance a mortgage loan": To replace an existing loan with a new one, typically to get a lower interest rate or change the loan terms.
  • They decided to refinance their mortgage loan to reduce their monthly payments.

Variants and Related Words

• Mortgage (n/v): Often used interchangeably with "mortgage loan" as a noun (e.g., ). As a verb, it means to pledge property as security for a loan.
• Home loan (n): A more general, informal synonym for a mortgage loan used to purchase a house.
• Collateral (n): The asset (like the property) offered to secure a loan.
• Lien (n): The legal right of a lender to hold a borrower's property until a debt is paid.

Synonyms

• Home mortgage: Specifically for residential property.
• Property loan: A more general term.
• Real estate loan: Emphasizes the type of asset being financed.

Related Phrases

• Mortgage payment: The regular (often monthly) sum paid to repay the loan.
  • Their mortgage payment is due on the first of each month.
• Mortgage lender: The institution that provides the loan.
  • They compared offers from several mortgage lenders.
• Mortgage broker: A professional who arranges mortgage loans between borrowers and lenders.
  • They used a mortgage broker to find the best loan terms.

Noun

1. a loan on real estate that is usually secured by a mortgage