Mortgage Agreement Template, Free Download 2026

This Mortgage (this "Mortgage") is made by [____________] ("Borrower" or "Mortgagor") in favor of [____________] ("Lender" or "Mortgagee") and secures the indebtedness described herein. Borrower hereby mortgages, grants, and conveys to Lender[, with power of sale (include only if the Foreclosure paragraph below elects power of sale and the law of the State where the Property is located permits it)], the real property located at [____________], County of [____________], State of [____________], legally described as follows: [INSERT FULL LEGAL DESCRIPTION FROM THE VESTING DEED] (the "Property"), together with all improvements, fixtures, and appurtenances. Borrower covenants that Borrower is lawfully seised of the estate conveyed by this Mortgage, has the right to mortgage, grant, and convey the Property, and that the Property is unencumbered except for the following encumbrances of record: [____________]. Borrower warrants and will defend title to the Property against all claims and demands, subject to those encumbrances.

This Mortgage secures repayment of a promissory note (the "Note") in the principal amount of [$__________], dated [____________], together with all interest, late charges, prepayment premiums, and other sums due under the Note and this Mortgage. The Note bears interest at the rate of [_____]% per annum [fixed / adjustable as described in the Note].

Borrower shall make monthly payments of principal and interest in the amount of [$__________], commencing on [____________] and continuing on the same day of each month until the maturity date of [____________], when the remaining balance shall be due and payable in full. Payments shall be applied first to interest, then to principal, unless otherwise required by applicable law.

[Escrow applies / Escrow is waived, and Borrower shall pay taxes and insurance directly.] If escrow applies, Borrower shall pay to Lender on each payment date one-twelfth (1/12) of the annual real property taxes, hazard insurance premiums, and mortgage insurance premiums (if applicable) estimated by Lender. Lender shall hold such funds in escrow and pay the obligations when due. Lender shall provide an annual escrow account statement and adjust the monthly escrow payment as needed.

Borrower shall maintain hazard insurance on the Property in an amount not less than the outstanding principal balance, with Lender named as loss payee. Borrower shall pay all real property taxes, assessments, and charges before delinquency. Failure to maintain insurance or pay taxes shall constitute a default, and Lender may force-place insurance and add the cost to the secured indebtedness.

Borrower shall maintain the Property in good condition, shall not commit waste, and shall comply with all laws and regulations. Borrower shall not alter, demolish, or remove any improvements without Lender's consent. Borrower shall occupy the Property as Borrower's principal residence (if applicable) and shall not rent or lease the Property without Lender's prior written consent, except a lease of three years or less that contains no option to purchase, if the Property is residential real property containing fewer than five dwelling units.

The following shall constitute Events of Default: (a) failure to make any payment within [thirty (30)] days of the due date; (b) failure to maintain insurance or pay taxes; (c) a sale or transfer of all or any part of the Property or any interest in it without Lender's prior written consent (due-on-sale clause), other than a transfer on which 12 U.S.C. 1701j-3(d) bars Lender from exercising a due-on-sale option; (d) material breach of any term; (e) Borrower's bankruptcy or insolvency. Upon default, Lender may declare the entire unpaid balance immediately due and payable (acceleration).

If Borrower fails to cure a default after notice and opportunity to cure as required by applicable law, Lender may foreclose this Mortgage by [judicial foreclosure / power of sale / both], and Lender shall be entitled to recover the outstanding indebtedness, interest, attorneys' fees, costs, and all other sums secured hereby. Borrower's rights of redemption, if any, shall be as provided by applicable state law.

Borrower may prepay the Note in whole or in part [without penalty / subject to a prepayment premium of _____% during the first ______ years]. [NOTE TO PREPARER: If this loan is consumer credit secured by a dwelling and Lender is a creditor under Regulation Z, a prepayment penalty is allowed only if the annual percentage rate cannot increase, the loan is a qualified mortgage, and it is not a higher-priced mortgage loan. The penalty may not exceed 2% of the amount prepaid during the first two years or 1% during the third year, and none may be charged after the third year (12 C.F.R. 1026.43(g)). State law may prohibit or further limit prepayment penalties. Delete this note before signing.] Partial prepayments shall be applied to the principal balance and shall not postpone the due date of subsequent payments unless Lender agrees in writing.

Lender may sell, transfer, or assign the Note and this Mortgage without Borrower's consent. Borrower shall be notified of any such transfer. Borrower may not transfer the Property without Lender's prior written consent, and any such unauthorized transfer, other than a transfer protected by 12 U.S.C. 1701j-3(d), shall trigger the due-on-sale provision.

Upon payment in full of all sums secured by this Mortgage, Lender shall release this Mortgage and deliver to Borrower a recordable satisfaction or release within the time required by the law of the State where the Property is located.

This Mortgage shall be governed by the laws of the State of [_____________]. This Mortgage shall be recorded in the official records of [____________] County. Time is of the essence. This Mortgage shall bind and inure to the benefit of the parties and their heirs, successors, and assigns.