Purchase money mortgage Meaning and Definition
Purchase money mortgage
Pronunciation
/
Part of Speech
Noun
Definition
A mortgage where the lender provides the funds for the borrower to purchase the property, and the borrower repays the loan through a series of regular payments.
Examples
- The couple used a purchase money mortgage to buy their dream home.
- The new homeowner chose a purchase money mortgage for its lower interest rates.
Synonyms
- Home mortgage
- Property financing
Antonyms
- Rental property
- Leasehold
Etymology
The term “purchase money mortgage” originated in the late 19th century, derived from the concepts of buying and financing a property.
Usage Notes
Purchase money mortgages are typically used for primary residences, rather than investment properties, and are often favored by first-time homebuyers.
Cultural References
Purchase money mortgages have been featured in popular TV shows and movies, such as “House Hunters” and “The Wolf of Wall Street.”
Idiomatic Expressions or Phrases
“In the black/Red” – referring to a mortgage being fully paid off or still having a balance, respectively.
Related Words or Phrases
- FHA loan
- VA loan
- Fixed-rate mortgage
Collocations
- Purchase money mortgage application
- Purchase money mortgage rates
Frequency of Use
Purchase money mortgages are a common financing option, with millions of Americans using them to purchase homes every year.
Common Misspellings
- Purchace money mortgage
- Gerbera mortgage