1 A grant of a security interest in real property to secure a loan, often for the purchase of the property. 2A loan secured by an interest in real property. 3 The paperwork reflecting such a loan and security interest. purchase money mortgage. A mortgage that secures debt incurred in connection with the property as to which the mortgage is given, for example, a mortgage on one's home given to secure a loan given in order to purchase that home. n. mortgagee The lender or creditor extending the...