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It is basically the sum of money that you borrowed to buy your house and
using this house as a guarantee or collateral.
A home mortgage document usually consists of two items; the promissory
note and the mortgage as the other document. The promissory note (aka a payable note) is stating
that one party will promise in writing to pay the required amount of money (that’s you) to
the other party (financial institution like a bank).
The bank will not give you a home loan until they make sure the property
or house value is equal to the loan; that way the bank can secure its loan.
It is similar to a car loan situation, where the bank is securing its loan
by taking the car back (repossessing) in case you can not make your payments any longer.
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