Mortgages in real estate often signify a deal wherein the borrowers of money assure the lenders of the monthly interest payment and the overall principal by transferring interest in property to them. It is hence a security given to the lenders in return for the debt.

Although the general structure of the mortgage contracts are similar, citing the property details, the loan incurred, the monthly interest, the final payment expected and the maturity date, mortgages themselves can come in various flavors to make them more attractive and feasible. These are usually bought and sold in the secondary market.

Depending on the value of a mortgage, one may or may not further securitize it. If securitized, the monthly interest generated on the mortgage contract is the income or profit one gets out of it. The mortgagor or the borrower can get the mortgage discharged once the debt is paid. However, not being able to repay the debt puts the borrower in a danger of losing the real estate property.

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