An online mortgage is a device used to create a lien on real estate by contract from a loan provider represented on the internet. The mortgage is an instrument that the borrower uses to pledge real property to the lender as security for a debt.   The mortgage loan instrument contains two parts: the mortgage, which is the pledge and the note, which is the actual evidence of the debt and promise to repay.   This is a very common type of debt instrument, used by many individuals to purchase housing.

In this arrangement, the money is used to purchase or refinance the property (refinance loan). The bank, however, is given the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank can reposess the house and sell it, to get their money back.  A mortgage can be used to finance almost anything; Houses, cars, boats, motor homes (normally named as second mortgage) , refinancing other loans and credit card debt etc.

Refinancing
is the process of applying for a home mortgage, typically at a different rate of interest than the existing mortgage, to pay off debts and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

Equity loan
is a mortgage placed on real estate  in exchange for cash  to the borrower. For example, if a person owns a home worth $100,000, but does not currently have a lien on it, they may take an equity loan at 80% loan to value (LVR) or $80,000 in cash in exchange for a lien on title placed by the mortgage lender  or the lender of the equity loan. The rate of interest applied to equity loans is much lower than that applied to unsecured loans, such as credit card debt.