When you purchase a house with a mortgage, you are the homeowner and you own the home. Your name is on the title as the homeowner, and the bank or mortgage company does not own your house. However, the mortgage lender has an interest in the property based on the documents signed at closing. The lender’s interest is typically secured by a lien on the property. This means that if you default on the loan, the lender has the right to foreclose on the home.
Key Facts
- Ownership: When you purchase a house with a mortgage, you are the homeowner and you own the home. Your name is on the title as the homeowner, and the bank or mortgage company does not own your house.
- Lender’s Interest: Although you own the home, the mortgage lender has an interest in the property based on the documents signed at closing. The lender’s interest is typically secured by a lien on the property. This means that if you default on the loan, the lender has the right to foreclose on the home.
- Mortgage Note: The mortgage note is a legal document that serves as evidence of your mortgage and your promise to repay the debt to the lender. It outlines the amount and terms of your loan, as well as any penalties for defaulting on the terms.
- Deed of Trust: The deed of trust is another important document that lists your legal obligations and rights, as well as those of the lender. It also states the lender’s right to foreclose on the home if you default on the loan.
- Collateral: Your home serves as collateral for the mortgage loan. This means that if you fail to make your mortgage payments, the lender can take legal action to repossess your home.
- Responsibility: As the homeowner, you have the power to make decisions about the property, including renovations, decorations, landscaping, and selling the home[3]. You are also responsible for repairs and maintenance of the property.
Lender’s Interest
The mortgage note is a legal document that serves as evidence of your mortgage and your promise to repay the debt to the lender. It outlines the amount and terms of your loan, as well as any penalties for defaulting on the terms.
The deed of trust is another important document that lists your legal obligations and rights, as well as those of the lender. It also states the lender’s right to foreclose on the home if you default on the loan.
Collateral
Your home serves as collateral for the mortgage loan. This means that if you fail to make your mortgage payments, the lender can take legal action to repossess your home.
Responsibility
As the homeowner, you have the power to make decisions about the property, including renovations, decorations, landscaping, and selling the home. You are also responsible for repairs and maintenance of the property.
Sources
- Who Owns the House in a Mortgage?
- First-Time Homebuyer FAQ: If I Have a Mortgage, Do I Own My Home?
- Who Owns My House: Me or My Mortgage Lender?
FAQs
Who owns the house with a mortgage?
You do. Your name is on the title as the homeowner, and the bank or mortgage company does not own your house.
What is the lender’s interest in the property?
The lender has a lien on the property, which means that if you default on the loan, the lender has the right to foreclose on the home.
What is a mortgage note?
A mortgage note is a legal document that serves as evidence of your mortgage and your promise to repay the debt to the lender.
What is a deed of trust?
A deed of trust is another important document that lists your legal obligations and rights, as well as those of the lender. It also states the lender’s right to foreclose on the home if you default on the loan.
What is collateral?
Collateral is an asset that is pledged as security for a loan. In the case of a mortgage, your home is the collateral.
What are my responsibilities as a homeowner?
As a homeowner, you are responsible for making mortgage payments, maintaining the property, and paying property taxes.
What happens if I default on my mortgage?
If you default on your mortgage, the lender can foreclose on your home. This means that the lender can sell your home to satisfy the debt.
Can I sell my house if I have a mortgage?
Yes, you can sell your house even if you have a mortgage. However, you will need to pay off the mortgage before you can sell the house.