• Home
    • FAQ
    • What Is The Difference Between A Mortgage & Title? | Fridays with Fred

    What Is The Difference Between A Mortgage & Title? | Fridays with Fred

    What are the differences between a mortgage and title?

    During the home buying process, we typically are asked many Real Estate questions by our clients and one common question that we’ve been asked over the years is: what’s the difference between a mortgage and title?

    This is a great question to ask because a mortgage sounds very similar to title, but in reality, both are different, that’s why in today’s edition of Friday’s with Fred we will break down the differences between the two so you will have a better understanding of these important parts of buying a home.


    Mortgage loans are different than titles because they tell you who is responsible for paying the loan on the home, but not who owns the property.

    In the 21st century, a mortgage is very common and most home buyers will pay for homes with mortgage loans rather than paying cash.

    Some of the most common mortgage loans are traditional mortgage, HUD, VA, USDA and VA mortgage loans.

    Once you have signed your mortgage loan documents they essentially act as a security instrument; this means that the lender will have a lien on the home and you will agree to pay them back on time, each month, over the next 15 to 30 years, until the mortgage loan is paid off in full.

    Since the home is the collateral, if you fall behind on your payments the lender has the rights to your house and can ultimately foreclose, but once the mortgage is paid off, the lien will be removed and the lender will return the promissory note that you originally signed when you agreed to the mortgage loan.


    As far as the title goes, titles are not sales contracts, the title is a legal document which shows who actually has legal ownership of the property.

    Thanks to the title, the buyer has proof of ownership for the property and nobody else can claim ownership.

    With the title, you will also find detailed information about the property including the street address, lot number, names of persons buying and selling the property and you will also have the ability to transfer of ownership of the property since the buyer of the home will actually have a vested interest in the property.

    Learn More

    To learn more about the difference between a mortgage loan and title, or to view homes for sale in Southern California, contact Fred Sed Realty today by calling us at (800) 921-9231 or click here to connect with us online.


    Trackback from your site.

    Leave a Reply

    About our blog

    Our agents write often to give you the latest insights on owning a home or property in the local area.