A mortgage is a form of debt that finances investment in property
The debt is secured by the property.
The mortgage is the difference between the down payment and the
value to be paid for the property.
Financial institutions such as savings institutions and mortgage
companies originate mortgages.
They accept mortgage applications and assess the creditworthiness
of the applicants.
The mortgage contract specifies the mortgage rate, the maturity, and
the collateral that is backing the loan.
The originator charges an origination fee.
The originator may earn a profit from the difference between the
mortgage rate and the rate that it paid to obtain funds....