Question about mortgages?

I have been looking around the internet about mortgages and came across this interesting piece of information on wikipedia and I do not know how true it is…wiki says "A mortgage is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed."

I have googled around and havent seen anything stated like that in any shape or from when searching for mortgage information, I googled the wiki quote and found a few sites that mention it, but no sites I trust…can anyone confirm or deny the wikipedia quote above? Also am I reading that quote right? I read the quote as in saying the interest will be paid back to the borrower (me) from the lender once I have paid the mortgage off

Thanks

4 Responses to “Question about mortgages?”

  1. Pat B Says:

    There are two different definitions of interest and I think you have them confused. The interest in land that they are talking about is not the interest you are paying on the loan. No you do not get any money back after repaying the loan.

    from the real estate dictionary, two different definitions of interest:

    1. cost of the use of money.
    Example: Lenders require payment of interest at a specified rate, to compensate for risk, deferment of benefits, inflation, and administrative burdens.

    2. The type and extent of ownership.
    Example: One may hold either a partial or Fee Simple interest in a property. That interest entitles one to specific ownership rights.

  2. Matthew M Says:

    It means that the lender caries a lien on the property until the mortgage is paid in full. At that time the lender releases the lien and full rights of ownership go to the buyer.

  3. MoneyMatters101.com Says:

    The basic definition of a mortgage is a written contract between a lender and a borrower in which a lien is placed on a home or other real property as security for a loan. The borrower qualifies for the loan to purchase property and agrees to repay the loan. The lender uses the property as security by issuing a note and deed of trust against it.

    You are reading the Wikipedia definition wrong. The interest that is being returned is the interest in the property itself, or the part of the property in which the loan was initially given on. It has nothing to do with the interest (interest rate) that is paid on money.

  4. Hanz H Says:

    The interest mentioned in the wikipedia definition is not what you’re thinking. it’s not the interest pertaining to money you pay. It’s interest in ownership. Doesn’t it seem illogical to you that the interest (money you paid) for the house will be returned to you by the lender once you’ve fulfilled the mortgage? If that’s the case, why did you have to pay in the first place?