What term is used for the borrower of the funds in a loan?

The borrower of the funds in a loan is referred to as the mortgagor. In a mortgage transaction, the mortgagor is the individual or entity that borrows money from a lender (the mortgagee) to purchase real estate. The mortgagor pledges the property as collateral for the loan, and this arrangement creates a legal relationship where the mortgagor is obligated to repay the borrowed amount under the terms specified in the mortgage agreement.

Understanding this terminology is crucial for anyone studying real estate, as it establishes the roles and responsibilities of the parties involved in a mortgage transaction. Knowing the difference between the mortgagor and the mortgagee can help clarify the dynamics of real estate financing and the obligations that each party has under the mortgage contract.