What is a mortgage?
A mortgage is a loan you acquire in order to purchase property, but you can also get cash for other purposes using the property as equity. In return for the loan, you pledge real property (land and/or a building) as security in case you fail to live up to your obligation. When you borrow money against property, you commit to two financial documents: • The NOTE that is a personal obligation to repay the loan on a timely basis. • The MORTGAGE DEED OF TRUST that is the pledge of the property as security. The mortgage deed of trust defines your obligations to your lender, as well as your rights and those of the lender. You are pledged to repay the mortgage loan, along with an additional charge for the lender’s service of lending you the money. The cost of borrowing the money is the interest rate specified in your note. The amount of time you have to pay back the loan is the note’s term.
(back to top) A mortgage is a loan you acquire in order to purchase property, but you can also get cash for other purposes using the property as equity. In return for the loan, you pledge real property (land and/or a building) as security in case you fail to live up to your obligation. When you borrow money against property, you commit to two financial documents: • The NOTE that is a personal obligation to repay the loan on a timely basis • The MORTGAGE DEED OF TRUST that is the pledge of the property as security; the mortgage deed of trust defines your obligations to your lender, as well as your rights and those of the lender. You are pledged to repay the mortgage loan, along with an additional charge for the lender’s service of lending you the money. The cost of borrowing the money is the interest rate specified in your note. The amount of time you have to pay back the loan is the note’s term.
A mortgage is a legal document that creates a security for a loan or other financial consideration, whereby, the registered vessel or share or a share of it is used as security. The person using the vessel as security and receiving the loan is called the mortgagor. The person taking the vessel as security and usually giving the loan is called the mortgagee. Only registered vessels can have mortgages recorded against them. For information on whether a registered vessel has a mortgage, please contact the Registrar at its Port of Registry. A certified or uncertified Transcript of Registry can also be requested from the port. For information on the appropriate fees, please refer to the Vessels Registry Fees Tariff. If the vessel has a name and a port written on the stern, it is a registered vessel. A mortgage is not permitted on licensed vessels.
