Who is referred to as the mortgagor in a mortgage loan transaction?

In a mortgage loan transaction, the borrower is referred to as the mortgagor. This is because the mortgagor is the individual or entity that takes out a loan secured by real property, thereby pledging that property as collateral for the loan. The mortgagor is responsible for making the payments on the mortgage and adhering to the terms of the loan agreement.

Understanding this terminology is crucial for anyone involved in real estate transactions, as it establishes the roles of the parties involved. The lender, known as the mortgagee, provides the funds for the loan, while the mortgagor is the one who receives those funds and agrees to the repayment terms. Other options, such as the insurance provider or the closing agent, play different roles in the transaction but do not hold the status of mortgagor. This distinction helps clarify responsibilities and rights within the context of the mortgage agreement.