A title free and clear of objectionable liens, clouds or other title defects. A marketable title enables an owner to sell his or her property freely to others and allows others to accept without objection. Mortgage A lien or claim against real property given by the buyer to the lender as security for money borrowed. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off. Mortgage commitment A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
Mortgage note A written agreement to repay a loan.
The agreement is secured by a mortgage, serves as proof of indebtedness and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the borrower personally responsible for repayment. A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than what would raise the balance to the original loan figure. A point is one percent of the amount of the mortgage loan.