Mortgages

As a trusty ol’ dictionary defines the term mortgage, it is a “temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt.” Sounds complicated, doesn’t it? To put it simply, here’s an example. John borrows a huge amount of money form Mark. To assure Mark that he will repay his debt, John temporarily grants the ownership of his car to Mark. He will get his car back once the loan is repaid. This is basically how mortgages work. Hope you got the message!