Mortgage
The security instrument that pledges real property as collateral for a debt, creating a lien in favor of the lender.
A mortgage is the instrument that pledges real property as security for a loan. It creates a lien that gives the lender the right to foreclose if the borrower defaults. In Florida, the borrower keeps title and the lender holds the lien.
The mortgage is paired with the promissory note. The note is the promise to pay; the mortgage is the security for that promise.
On the exam
Exam trap
Tested in
Residential Mortgages (9% of the exam)
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- Promissory Note
The borrower's written promise to repay a debt, which is the instrument that actually creates the obligation.
- Lien Theory
The rule, followed in Florida, that a borrower keeps title to mortgaged property while the lender holds only a lien.
- PMI (Private Mortgage Insurance)
Insurance a conventional borrower pays when the loan-to-value ratio is above 80 percent, protecting the lender against default.
Sources
This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.