In the most common terms, a mortgage is a method in which an individual, or business as the case may be, can purchase real estate without paying full price out of pocket.  The mortgage itself is not considered a debt, however it is considered a security for the loan holder over the borrower.  The security lies in the fact that the money borrowed will be paid according to the agreed upon terms, or the loan holder will be paid when the property is foreclosed on if payments cannot be made.  The loan holder holds the papers on the property until all terms of the mortgage have been met, at which time the borrower will own the property free and clear.

Mortgaging in some form is observed in most countries.  Although mortgaging is most commonly associated with real estate purchases, it can also be applied to other large purchases such as ships, although some jurisdictions dictate only land may be mortgaged.

Obtaining a mortgage can be a tricky process, and one or both parties involved may require the assistance of a lawyer.  A lawyer can explain the entire workings of the mortgage and insure that the borrower fully understands the ramifications of the deal in which he or she is about to partake.  Before a lawyer is present or a house is purchased, it is best to do some research.  There are mortgage calculators online that can better help a buyer understand the financial obligation of a mortgage.