A private mortgage, also known as a private mortgage loan or a private mortgage agreement, is a loan secured by real estate that is provided by a private individual or entity rather than a traditional financial institution like a bank or credit union. In a private mortgage arrangement, the terms of the loan, including interest rate, repayment schedule, and any collateral requirements, are negotiated directly between the borrower and the lender, without the involvement of a bank or other financial institution.

Private mortgages can be an alternative for borrowers who may not qualify for traditional bank loans due to factors such as poor credit history, self-employment income, or unique property circumstances. However, private mortgages often come with higher interest rates and may have less favorable terms compared to conventional mortgages.

Both the borrower and lender in a private mortgage transaction should carefully consider the risks involved and consult legal and financial professionals to ensure that the agreement is structured in a way that protects both parties' interests. Additionally, it's important for borrowers to thoroughly research potential lenders and thoroughly understand the terms of the loan before entering into a private mortgage agreement.