“Mortgage” comes from the Latin word mort, meaning death — as in “this debt is yours until you die.” Mortgages are more flexible than their root word implies, but these legal agreements that cement your responsibility to repay your home loan are still a big commitment.
What is the definition of a mortgage?
A mortgage, or deed of trust in some states, is a legal document you sign when buying or refinancing a home that gives your lender the right to take the property if you don’t repay the loan as agreed. A copy of your mortgage is filed in the county records as a lien, or legal claim, against the home.
» MORE: How to choose the best mortgage
What is a promissory note?
A promissory note is another loan document you’ll sign, promising to repay the money you’ve borrowed, with interest. It goes hand-in-hand with a mortgage.
