Mortgagor
Definition:
The homeowner or borrower who takes out a mortgage loan to buy property.
Explanation:
The mortgagor is responsible for insuring the property and paying premiums. Insurance protects both the homeowner’s equity and the mortgagee’s financial interest.
Example:
As the mortgagor, you’re required to keep active homeowners insurance as long as your mortgage is in place.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.