1.9- What is a mortgage lender/funder ?

A Lender is an entity to grant the use of its funds on condition that it or its equivalent would be returned and that interest is paid for its temporary use. In case of a Mortgage, the lender is an entity, often a bank or a credit union, that provides financing for the purchase of a home. A Mortgage lender uses a mortgage as security or collateral for lending the money.

For the life of the mortgage loan, the borrower owes the lender for the amount borrowed to buy the home, plus interest. Each monthly payment goes partially towards principal and Interest.