When you use your property as security for the payment of your debts, this process is called mortgage. The term mortgage refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage.They are mostly used while purchasing real estates where the individual can buy the property without making full value upfront. The mortgagor i.e. the borrower puts the property as security against the debt for the rest of the value of the property. This way, legally the title of the land goes to the lender and equity of redemption goes to the borrower. The lender receives a note evidencing the borrower's debt and obligation to repay, plus a lien on the subject property. Types of Mortgage Loans:

There are many different types of mortgage loans. However, the two most popular and basic types are