Question: What is the difference between a mortgagee and a mortgagor?
A mortgagee is defined as the entity or organization that lends out money to a person or people in order for them to buy real property such as a home. For example, a bank that lends money to a borrower is called a mortgagee.
A mortgagor on the other hand is defined as the person who borrows money from a bank or other financial institute in order to purchase some property.
What is mortgage?
Mortgage is defined as the legal agreement between a person and a bank in which the person can borrow a particular amount of money from the bank in order to buy a house, and pay back the money over a period of time. This period of time is usually in the years.
Mortgage is also known as the amount of money that a person borrows from the bank in order to buy a house. So if you borrowed $300,000 from a bank to buy a house, $300,000 + the interest is your mortgage.
In the realm of the mortgage business, we have two major parties namely: the mortgage and the mortgagor. In our answer above you got to know who the mortgagee and mortgagor are.