What term describes the individual or entity that borrows money to secure a mortgage?

What term describes the individual or entity that borrows money to secure a mortgage?

• A. Mortgagor
• B. Mortgagee
• C. Investor
• D. Creditor

Answer: (A)

The term that describes the individual or entity that borrows money to secure a mortgage is "mortgagor." A mortgagor is typically a homeowner who takes out a loan to purchase real estate, using the property as collateral for the loan. This means that the mortgagor is responsible for repaying the loan according to the terms set forth in the mortgage agreement. In the context of mortgages, understanding the roles is essential. The mortgagee, for example, is the lender who provides the funds for the mortgage, and therefore, this term does not refer to the borrower. Investors and creditors are more general terms that can apply to various financial transactions and do not specifically pertain to the borrower in a mortgage context. Thus, the definition of a mortgagor precisely aligns with the role of the borrower in a mortgage transaction, making it the correct choice for this question.

The term that describes the individual or entity that borrows money to secure a mortgage is "mortgagor." A mortgagor is typically a homeowner who takes out a loan to purchase real estate, using the property as collateral for the loan. This means that the mortgagor is responsible for repaying the loan according to the terms set forth in the mortgage agreement.

In the context of mortgages, understanding the roles is essential. The mortgagee, for example, is the lender who provides the funds for the mortgage, and therefore, this term does not refer to the borrower. Investors and creditors are more general terms that can apply to various financial transactions and do not specifically pertain to the borrower in a mortgage context. Thus, the definition of a mortgagor precisely aligns with the role of the borrower in a mortgage transaction, making it the correct choice for this question.