Who is referred to as the mortgagor?

In the context of mortgage transactions, the term "mortgagor" specifically refers to the borrower. The mortgagor is the individual or entity that borrows money from a lender to purchase real estate and pledges the property as collateral for the loan. This relationship is foundational in mortgage agreements, as it establishes the parties involved and their respective roles.

When the mortgagor takes out a mortgage, they are agreeing to repay the loan amount, along with any interest, over an agreed-upon period. If the mortgagor fails to make timely payments, the lender, known as the mortgagee, has the right to foreclose on the property to recover the owed amount. Understanding the terminology related to mortgages is essential for anyone involved in real estate transactions, as it ensures clarity in communications and contracts.