Certified Pennsylvania Evaluator Practice Exam

In a mortgage agreement, who is referred to as the mortgagor?

1. Lender

2. Borrower

3. Realtor

4. Appraiser

The correct answer is: Borrower

In a mortgage agreement, the term "mortgagor" specifically refers to the borrower—the individual or entity that is taking out the loan to purchase or refinance property. The mortgagor pledges the property as collateral for the loan provided by the lender, known as the mortgagee. This establishes a legal obligation for the mortgagor to repay the loan according to the terms outlined in the mortgage agreement. Understanding the roles in a mortgage transaction is crucial for anyone involved in real estate, as it clarifies the responsibilities and rights of each party. For example, while the lender provides the funds necessary for the property purchase, it is the borrower who is responsible for making the mortgage payments and adhering to the terms of the loan agreement. This distinction significantly impacts the financing and ownership aspects in real estate transactions.