Legal Definitions - mortgage commitment

A mortgage commitment is a written agreement between a lender and a borrower that outlines the terms and conditions of a loan for the purchase of a specific property. This agreement usually has a time limit and specifies the amount of money that the lender is willing to lend to the borrower.

For example, if a borrower is interested in purchasing a home, they may apply for a mortgage loan from a lender. If the lender approves the loan, they will issue a mortgage commitment that outlines the terms of the loan, such as the interest rate, the length of the loan, and the amount of the loan.

Another example is if a borrower is interested in refinancing their current mortgage. They may apply for a new loan with a different lender and receive a mortgage commitment that outlines the terms of the new loan, such as the interest rate and the length of the loan.

These examples illustrate how a mortgage commitment is a written agreement between a lender and a borrower that outlines the terms and conditions of a loan for the purchase or refinancing of a specific property.