Mortgage
A mortgage is a method of using property (real or personal) as
security for the payment of a debt.
The term mortgage refers to the legal
device used in securing the property, but it is also commonly used
to refer to the debt secured by the mortgage, the mortgage loan.
In most jurisdictions mortgages are
strongly associated with loans secured on real estate rather than
other property and in some cases only land may be mortgaged. Arranging
a mortgage is seen as the standard method by which individuals and
businesses can purchase residential and commercial real estate without
the need to pay the full value immediately. See mortgage loan for
residential mortgage lending, and commercial mortgage for lending
against commercial property.
Real estate or immovable property
is a legal term that encompasses land along with anything permanently
affixed to the land, such as buildings. Real estate (immovable property)
is often considered synonymous with real property (also sometimes
called realty), in contrast with personal property (also sometimes
called chattel or personalty). However, for technical purposes,
some people prefer to distinguish real estate, referring to the
land and fixtures themselves, from real property, referring to ownership
rights over real estate.