Who is a mortgagor?

A mortgagor is defined as the individual or entity that borrows money from a lender to purchase a property, using the property itself as collateral for that debt. In this context, the person who has the mortgage is the one who receives funds and agrees to repay them over time, typically with interest.

In real estate transactions, the mortgagor enters into an agreement with a lender, which could be a bank or another financial institution. This agreement allows the mortgagor to buy a property they may not have sufficient funds to purchase outright. The term ‘mortgagor’ is vital in mortgage contracts, as it designates the borrower who is responsible for the loan repayment and for maintaining the property until the mortgage is fully satisfied.

The other options mentioned do not fit the definition of a mortgagor. Entities that provide the mortgage, such as banks or credit unions, are known as lenders or mortgagees. Insurance companies typically deal with providing insurance coverage rather than lending money. An appraiser is involved in assessing the value of the property but does not have a role in the borrowing or lending process associated with mortgages.