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A mortgage is a form of financial asset
where the lender (mortgagee) has the right to recover their money by
selling the property if the borrower (mortgagor) defaults on
payment.
Technically the term mortgage means engagement to
death, but it is also commonly used to refer to the debt secured by
the mortgage.
In most jurisdictions mortgages are strongly
associated with loans secured on real estate rather than other
property (such as ships) and in some cases only land may be
mortgaged. Arranging a mortgage is seen as the standard method by
which individuals or businesses can purchase residential or
commercial real estate without the need to pay the full value
immediately.
In many countries it is normal for home purchase
to be funded by a mortgage. In countries where the demand for home
ownership is highest, strong domestic markets have developed;
notably in Great Britain, Spain and the United States.
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