A purchase-money mortgage is a type of loan that is used to purchase a property. It is typically used by buyers who do not have enough cash to purchase a property outright, and instead, use the loan to finance the purchase. The loan is secured by the property being purchased, and the buyer makes payments to the lender until the loan is paid off. The lender's interest in the property is established through a mortgage or deed of trust which will be recorded in the public records, this mortgage or deed of trust will be subordinate to any prior encumbrances, liens or judgments. The purchase-money mortgage is different from a refinance mortgage, in which a borrower takes out a new loan to pay off an existing one.