What is a mortgagor?

A mortgagor is defined as the borrower in a mortgage agreement. In this context, the mortgagor is the individual or entity that is seeking to purchase property and secures the loan by offering the property as collateral. When the mortgagor takes out a loan to buy a home or other types of real estate, they agree to repay the loan over a specified period, typically accompanied by interest.

This term is fundamental to understanding the dynamics of real estate transactions and financing. The relationship between the mortgagor and the lender is crucial, as it lays the groundwork for the obligations and rights each party has in the transaction. The mortgagor (borrower) is responsible for making regular payments until the mortgage is repaid, at which point they fully own the property.

In contrast, other roles such as the lender, legal advisor, or appraiser serve different functions within the mortgage process, which are not related to the act of borrowing against the property itself. The lender provides the funds, legal advisors help navigate the transaction, and appraisers assess property value, but it is the mortgagor who is directly engaged as the borrower. Understanding this distinction clarifies the responsibilities and stakes involved in mortgage agreements.