Which term describes the party who borrows money in a mortgage?

Which term describes the party who borrows money in a mortgage?

• A. Lender
• B. Mortgagor
• C. Beneficiary
• D. Trustee

Answer: (B)

The party who borrows money in a mortgage is the mortgagor. The mortgagor signs the promissory note and pledges the property as security, giving the lender a lien on the real estate. The lender, in turn, is the mortgagee. In some structures like a deed of trust, the beneficiary is the lender who benefits from the security, and a trustee holds the title to the property for the benefit of the lender. So the borrower is the mortgagor.

The party who borrows money in a mortgage is the mortgagor. The mortgagor signs the promissory note and pledges the property as security, giving the lender a lien on the real estate. The lender, in turn, is the mortgagee. In some structures like a deed of trust, the beneficiary is the lender who benefits from the security, and a trustee holds the title to the property for the benefit of the lender. So the borrower is the mortgagor.