What Are a Mortgagor’s Responsibilities? A Homeowner’s Guide

What Are a Mortgagor’s Responsibilities? A Homeowner’s Guide

Buying a home is a major financial milestone—and for most people, that journey involves taking out a mortgage. If you’ve secured a home loan, you’ve taken on the role of a mortgagor—the borrower responsible for repaying the loan and maintaining the property.

But what exactly are a mortgagor’s responsibilities? From making timely payments to protecting the value of your home, this guide explains everything you need to know in clear, simple terms.


What Is a Mortgagor?

A mortgagor is a person or entity that borrows money from a lender (the mortgagee) to purchase real estate. In exchange, the mortgagor agrees to repay the loan under agreed-upon terms—and pledges the property as collateral. If the borrower fails to meet their obligations, the lender may repossess the property through foreclosure.

In simpler terms, if you’ve taken out a mortgage, you are the mortgagor.


Key Responsibilities of a Mortgagor

Understanding your responsibilities helps you protect your home, your credit, and your financial future. Here are the core obligations every mortgagor must uphold:

1. Make On-Time Monthly Mortgage Payments

Your mortgage payment typically includes:

  • Principal: The amount you borrowed
  • Interest: The cost of borrowing the money
  • Taxes and Insurance: Escrowed into your payment in many cases

Why It Matters:
Late or missed payments can result in fees, damage your credit score, and eventually lead to foreclosure.

Pro Tip: Set up automatic payments to avoid missing a due date.

2. Maintain the Property

When you borrow money to buy a home, you're not just promising to pay it back—you’re also agreeing to keep the property in good condition.

This includes:

  • Making necessary repairs
  • Keeping the home structurally sound
  • Preventing issues like leaks, mold, and pest damage

Why It Matters:
The property serves as collateral for the loan. If it loses value due to neglect, it puts both you and your lender at risk.


3. Keep Property Taxes and Homeowners Insurance Current

Even if your mortgage includes an escrow account that pays taxes and insurance, it’s still your responsibility to ensure:

  • Property taxes are paid on time
  • Homeowners insurance is active and adequate
  • Additional insurance (e.g., flood or earthquake) is purchased if required

Why It Matters:
Failure to pay taxes can result in tax liens. Letting insurance lapse could leave you unprotected in case of disaster.


4. Follow the Terms of the Loan Agreement

Your mortgage contract (also called a deed of trust or promissory note) outlines specific requirements. You must:

  • Use the property as agreed (e.g., as your primary residence)
  • Notify the lender of major changes (e.g., renting the home or structural alterations)
  • Avoid using the property for illegal or high-risk activity

Why It Matters:
Violating loan terms can trigger penalties—or even force the entire loan to become due immediately.


Quick Reference: Mortgagor Duties at a Glance

ResponsibilityWhy It’s Important
Pay your mortgage on timeProtects credit, avoids fees, prevents foreclosure
Maintain the propertyPreserves home value and lender’s collateral
Pay property taxes and insuranceAvoids legal issues, ensures financial protection
Abide by mortgage termsMaintains legal compliance and good standing with your lender
Maintain required insuranceCovers losses from fire, weather, or other damage that could otherwise cost you dearly

Who Can Be a Mortgagor?

The term “mortgagor” isn’t limited to individuals buying a home for personal use. It can apply to:

  • Individual homebuyers – Primary residences, second homes, or vacation properties
  • Real estate investors – Properties purchased for income generation or resale
  • Businesses and developers – Commercial buildings, warehouses, or new construction projects
  • Government or public entities – Public housing and infrastructure-related real estate financing

The Mortgage Process: A Quick Overview

Here’s a simplified look at the steps mortgagors typically follow to obtain a mortgage:

1. Evaluate Your Finances

Review your income, credit score, savings, and existing debt to determine what you can afford.

2. Explore Loan Options

Compare conventional, FHA, VA, and USDA loans. Some are designed to help first-time or lower-income buyers.

3. Compare Lenders

Interest rates and fees vary. Use tools like Lendgo to compare quotes from top lenders.

4. Get Pre-Approved

This shows sellers you're serious and financially qualified. It also helps clarify your budget.

5. Submit a Loan Application

Provide proof of income, assets, employment, and details about the home you want to purchase.

6. Undergo Loan Review and Appraisal

The lender confirms your financial information and ensures the home’s value supports the loan.

7. Close on the Home

Sign all documents, pay any closing costs, and officially become the mortgagor.

8. Start Making Payments

Begin your monthly mortgage payments and fulfill your ongoing responsibilities as a homeowner.


Conclusion: A Mortgagor’s Role Is About More Than Just Paying the Mortgage

Being a mortgagor means owning your responsibilities—financially, legally, and practically. Your mortgage agreement is a long-term commitment, and staying on top of your duties helps protect your investment, your credit, and your future.

With the right knowledge and proactive habits, you can be a confident, prepared homeowner who keeps their mortgage in good standing and their home in great condition.