Definitions

1. noun

A loan or credit arrangement in which a borrower receives a sum of money from a lender and agrees to repay it, usually with interest, over a specified period of time, typically in installments, with the borrower typically using the loan for the purchase of a property, such as a house.

“She took out a mortgage to buy her dream home.”

2. verb

To lend money to a borrower on the security of the borrower’s property, typically a house or other real estate, with the lender agreeing to accept installments of principal and interest in return for the loan.

“The bank will mortgage the property to secure the loan.”

3. verb

To give security for a debt by using property as collateral.

“The company will mortgage its assets to pay off its debts.”