Finance
A NH homebuyer is asked to sign a 'mortgage note' at closing. This document is:
AThe same as the mortgage/deed of trust
BThe personal promise to repay the loan—it is the evidence of the debt✓ Correct
CThe title insurance policy
DThe deed conveying property to the buyer
Explanation
The mortgage note (promissory note) is the borrower's personal promise to repay the loan according to the stated terms. It is the evidence of the debt.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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