Mortgage Blog

Understanding a Mortgage instrument

Perhaps one of the biggest step that most of us take is purchasing a home. This will involve signing a mortgage instrument which is an agreement between the buyer of a home and a lender who finances the home. The two parties are called a mortgagor and a mortgagee, the buyer being the mortgagor. A mortgage instrument is signed by the two parties as an agreement to lend and a promise to pay. It is in effect, a promissory note. Mortgage documents are then filed with the registrar of deeds and a lien is placed on the property, ensuring if it is sold that the lender will receive their funds.


Florida also allows a homeowner to place a homestead exemption on their property. A homestead exemption helps homeowners protect the equity they have built in their home in the event a creditor (not the mortgagee) tries to force the sale of the home in order to collect on unpaid debts. While a homestead exemption will not protect against all claimants, there are several creditors who are unable to force a sale of your home. If the homeowner is married, their spouse is also legally allowed to file a homestead exemption.


Please consult your attorney, lender or title company for exact mortgage instrument questions. We are not attorneys or licensed real estate professionals. Our blog is for informational puposes only. NMLS #1743702


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