Finance
What is the difference between a mortgage and a promissory note?
AThey are the same document
BThe promissory note is the personal promise to repay; the mortgage is the lien on the property securing repayment✓ Correct
CThe mortgage is the promise to repay; the note creates the lien
DOnly the mortgage is required for a real estate loan
Explanation
The promissory note is the personal IOU—the borrower's promise to repay. The mortgage (or deed of trust) is the security instrument that pledges the property as collateral for the note.
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