Definition: A purchase money mortgage secures financing used to acquire the property. In many introductory real estate examples, it refers specifically to financing taken back by the seller.
Example
A buyer pays part of the price in cash and gives the seller a note secured by a mortgage for the remainder.
Keep the distinction clear
Read the context: the term can be broader than seller financing. It does not automatically mean a second lien or a particular interest rate.
Related terms
Mortgage · Promissory Note · Down Payment
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: Cornell LII: purchase money mortgage
Pronunciation (US): PUR-chuhs MUH-nee MOR-gij (capitals show stress)
Pronunciation reference: Merriam-Webster
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