Warning
Info
Warning
Info
Simple English definitions for legal terms
mortgage commitment
Read a random definition: natio
A quick definition of mortgage commitment:
A mortgage commitment is a written agreement between a lender and a borrower that outlines the terms of a loan for the purchase of a specific property. This agreement usually has a time limit and specifies the amount of money that will be lent and the conditions under which it will be repaid.
A more thorough explanation:
A mortgage commitment is a written agreement between a lender and a borrower that outlines the terms and conditions of a loan for the purchase of a specific property. This agreement usually has a time limit and specifies the amount of money that the lender is willing to lend to the borrower.
For example, if a borrower is interested in purchasing a home, they may apply for a mortgage loan from a lender. If the lender approves the loan, they will issue a mortgage commitment that outlines the terms of the loan, such as the interest rate, the length of the loan, and the amount of the loan.
Another example is if a borrower is interested in refinancing their current mortgage. They may apply for a new loan with a different lender and receive a mortgage commitment that outlines the terms of the new loan, such as the interest rate and the length of the loan.
These examples illustrate how a mortgage commitment is a written agreement between a lender and a borrower that outlines the terms and conditions of a loan for the purchase or refinancing of a specific property.