First of all..what is a mortgage?A mortgage is a financial instrument, an asset that can be bought and sold like a bond or a T-Bill. Just like every other investment, there are certain terms you should be familiar with. If you invest in shares you learn about P/E ratios, yields, beta, book value per share etc. There are at least 2 parts to every mortgage, the note (or promissory note), which is the promise to pay and the mortgage itself, which provides the real estate security for the promissory note. There can also be an assignment of rents agreement that says that if the borrower stops paying, the lender can collect the rent and set it against the money owed.
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