Who is referred to as the mortgagor in a mortgage agreement?

In a mortgage agreement, the term "mortgagor" refers specifically to the individual borrowing money for a home. This person takes out a loan from a lender—the mortgagee—using the property as collateral. The mortgagor is responsible for repaying the loan according to the terms outlined in the mortgage agreement.

The distinction is important in understanding the roles within the mortgage process. The mortgagor essentially pledges their property to secure the loan, which means if they fail to repay, the lender has the right to initiate foreclosure proceedings to recover the owed amount. This relationship is foundational in real estate transactions involving financing, as it highlights the obligations and legal framework surrounding borrowing and lending.

Understanding this concept helps clarify the various parties' roles in real estate transactions and lends insight into how mortgage agreements function overall.