Legal Definitions - mortgaging out

Definition: Mortgaging out refers to the practice of financing 100% of the purchase price of a real property.

Example: John wants to buy a house worth $300,000. He doesn't have enough money to pay for it in cash, so he decides to mortgage out. He borrows $300,000 from a bank or a lender and pays it back over a period of time with interest.

Explanation: Mortgaging out is a common practice among homebuyers who don't have enough money to pay for a property in cash. By mortgaging out, they can purchase a property without having to save up for years. However, it's important to note that mortgaging out comes with interest rates and fees, which can add up over time.