Legal Definitions - legal mortgage

A legal mortgage is a type of mortgage where the borrower transfers the title of their property to the lender as security for a debt or obligation. The mortgage becomes void once the borrower pays off the debt or fulfills their obligation according to the agreed terms.

For example, if a person takes out a loan to buy a house, they may offer the house as collateral to the lender. The lender will hold the title to the property until the borrower pays off the loan. If the borrower fails to pay, the lender can foreclose on the property and sell it to recover their money.

Other types of mortgages include adjustable-rate mortgages, where the interest rate can change over time, and fixed-rate mortgages, where the interest rate remains the same throughout the loan term.