Lease vs. Mortgage — What's the Difference?

A legal document outlining terms and conditions of property rental.

The conveyance of an interest in property as security for a debt.

Temporary possession of property for a period in exchange for rent.

A legal agreement by which a bank lends money at interest in exchange for title of the debtor's property.

A fixed-term tenancy agreement.

A borrower's personal guarantee to repay the loan used to buy property.

A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. Property, buildings and vehicles are common assets that are leased.

A deed by which a borrower becomes a mortgagor.

A contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment

A legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt

Grant (property) on lease; let

Convey (a property) to a creditor as security on a loan

A contract granting use or occupation of property during a specified period in exchange for a specified rent or other form of payment.

A loan for the purchase of real property, secured by a lien on the property.

The term or duration of such a contract.

The document specifying the terms and conditions of the repayment of such a loan.

To grant use or occupation of under the terms of a contract.

The repayment obligation associated with such a loan

To get or hold by such a contract.

The right to payment associated with such a loan

An interest in land granting exclusive use or occupation of real estate for a limited period; a leasehold.

The lien on the property associated with such a loan.

An interest granting exclusive use of any thing, such as a car or boat.

To pledge (real property) as the security for a loan.

The contract or deed under which such an interest is granted.

To make subject to a claim or risk; pledge against a doubtful outcome

The document containing such a contract or deed.

(legal) A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property, such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

The period of such an interest.

(obsolete) State of being pledged.

An open pasture or common.

To borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land; to pledge a property in order to get a loan.

The place at which the warp-threads cross on a loom.

To pledge and make liable; to make subject to obligation; to achieve an immediate result by paying for it in the long term.

To grant a lease as a landlord; to let.

A conveyance of property, upon condition, as security for the payment of a debt or the preformance of a duty, and to become void upon payment or performance according to the stipulated terms; also, the written instrument by which the conveyance is made.

To hold a lease as a tenant.

State of being pledged; as, lands given in mortgage.

(transitive) To gather.

To grant or convey, as property, for the security of a debt, or other engagement, upon a condition that if the debt or engagement shall be discharged according to the contract, the conveyance shall be void, otherwise to become absolute, subject, however, to the right of redemption.

(transitive) To pick, select, pick out; to pick up.

Hence: To pledge, either literally or figuratively; to make subject to a claim or obligation.

(transitive) To glean.

A conditional conveyance of property as security for the repayment of a loan

(intransitive) To glean, gather up leavings.

Put up as security or collateral

To tell lies; tell lies about; slander; calumniate.

A loan for purchasing property.

To release; let go; unloose.

To gather what harvesters have left behind; to glean.

To grant to another by lease the possession of, as of lands, tenements, and hereditaments; to let; to demise; as, a landowner leases a farm to a tenant; - sometimes with out.

To hold under a lease; to take lease of; as, a tenant leases his land from the owner.

The temporary transfer of a possession to another person in return for a fee or other valuable consideration paid for the transfer;

The contract for such letting.

Any tenure by grant or permission; the time for which such a tenure holds good; allotted time.

Property that is leased or rented out or let

A contract granting use or occupation of property during a specified time for a specified payment

The period of time during which a contract conveying property to a person is in effect

Let for money;

Hold under a lease or rental agreement; of goods and services

Grant use or occupation of under a term of contract;

Engage for service under a term of contract;

A contract for renting property.

An agreement granting use or occupation of property during a specified period.

A lease is a legal agreement granting use or occupation of property for a specified time in exchange for rent.

A mortgage is a type of loan used to buy property, with that property serving as collateral.

You can acquire property through a mortgage by borrowing money from a lender and repaying it over time, typically with interest.

Breaking a lease can result in penalties or legal action, as defined by the lease agreement.

Some leases may have provisions for early termination, often involving a penalty or specific conditions.

No, a lease does not provide ownership, only the right to use the property.

There are various types of mortgages, including fixed-rate, adjustable-rate, and government-backed loans.

Lease payments can be lower than mortgage payments, but this varies widely depending on the property and location.

Yes, you can sell a property with a mortgage, but you must pay off the mortgage at the time of sale.

Leases typically require a security deposit, not a down payment.

Down payments for mortgages vary, but 20% of the home's purchase price is traditional to avoid private mortgage insurance (PMI).

Equity is the portion of the property value that the owner has paid off and owns outright.

A mortgage broker is a professional who helps borrowers find the best mortgage rates and terms from various lenders.

Lease terms can range from month-to-month to several years, with one-year leases being common.

Some leases include utilities, but it depends on the terms of the agreement.