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A mortgage is a debt security where the borrower gives the lender a lien on a property as collateral for repayment of the loan.

Expanded Definition

The mortgage lien is recorded with the county recorder of deeds.

The amount of money loaned on property is often limited by its appraised value. The owner may borrow against the equity in a property already mortgaged with a second mortgage. The second mortgage is often at a higher interest rate. The lender secured by a second mortgage has no claim on the property until the lender secured by the first mortgage has been paid. A second mortgage is often used to secure a home equity loan.

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