A mortgage is a secured note because the building will serve as collateral.

Question

Quizplus · Accepted Answer

A mortgage is a loan that is secured by the property or building being purchased, which serves as collateral in case the borrower defaults on the loan. This means that if the borrower cannot make their mortgage payments, the lender can foreclose on the property and sell it to recover their money. Therefore, a mortgage is considered a secured note.

A Mortgage Is a Secured Note Because the Building Will