Question

George borrows funds from Hometown Credit Union (HCU) to buy real property. George signs a written instrument that gives HCU an interest in the property as security for the debt’s payment. This is_______.

Answer 1

(a) Mortgage

Step-by-step explanation:

Mortgage is a credit from a bank or moneylender to assist you with financing the acquisition of a home. At the point when you take out a home loan, you make a guarantee to reimburse the cash you've acquired, in addition to a settled upon financing cost. The house is utilized as "security.

It is a loan wherein property or land is utilized as security. The borrower goes into a concurrence with the moneylender (normally a bank) wherein the borrower gets money forthright at that point makes installments over a set time range until he takes care of the loan specialist in full.