What Does Mortgagee Mean?
A mortgagee is a lender who lends the money for a mortgage, which the borrower can use to buy property, such as a residential home.
A mortgage borrower pays not only for the loan but also for the interest on it. Failure to pay the loan on time gives the mortgagee the power to take the property from the borrower.
The mortgagee is often a bank or a similar financial institution.
Insuranceopedia Explains Mortgagee
The mortgaging bank or financial institution often conducts a credit investigtion to evaluate the borrower's capacity to repay the loan and make the interest payments. This investigation lets the mortgagee know how big of a mortgage they can issue to the borrower, as well as the terms of the loan, such as the monthly interest rate.
Payments can vary. The mortgagee may accept monthly interest and get the full loan back at the last payment. Or it can divide the loan amount sequentially and then add the monthly interest. The latter is less burdensome for many borrowers. In either case, the borrower must repay the entirety of the mortgage on time or the mortgagee reserves the right to repossess the property purchased with the mortgage.