Final answer:
The instrument that creates a lien on property for debt repayment is known as a mortgage or deed of trust (B). A promissory note is a borrower's promise to repay, and a security interest is the lender's right over collateral. The advantage between borrower and lender in a mortgage loan depends on the comparison of mortgage interest rates to inflation rates.
Step-by-step explanation:
An instrument that creates a voluntary lien on real property to secure repayment of a debt is known as a mortgage or a deed of trust. A promissory note is a separate agreement that outlines the borrower's promise to pay back the loan. A security interest refers to a lender's right to take property (collateral) if the borrower fails to repay the loan.
When determining the most advantageous years for borrowing or lending money for a mortgage loan, one must compare the mortgage interest rate with the rate of inflation. If the interest rate on a mortgage is lower than the rate of inflation, it is generally better for the borrower, because in real terms, they would be paying back less. Conversely, if the mortgage interest rate is higher than the rate of inflation, it is typically better for the lender, as the real value of the payments received over time exceeds the inflation rate.