A mortgage is a loan provided by a bank or other lender, where the collateral is real estate to be purchased using that loan. In addition, mortgages can carry a fixed or adjustable rate of interest. Some government programs provide mortgage assistance to veterans or other qualified individuals. In addition, real estate owners can take on additional mortgages to meet financial needs. Any mortgage is open to foreclosure if the real estate owner fails to make payments.
The mortgage ties the promissory notes obligation to pay to the real estate