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A mortgage is a method of using property
(real or personal) as security for the payment of a debt.
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The term mortgage (from Law French, lit.
death vow) refers to the legal device used in securing the property, but it is
also commonly used to refer to the debt secured by the mortgage, the mortgage
loan.
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. See mortgage loan for
residential mortgage lending, and commercial mortgage for lending against
commercial property.
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