What is the primary purpose of a mortgage (deed of trust)?

The primary purpose of a mortgage, or deed of trust, is to pledge the property as security for the loan. This means that when a borrower takes out a mortgage to finance the purchase of real estate, that property is used as collateral for the loan. If the borrower fails to repay the mortgage as agreed, the lender has the right to foreclose on the property, which allows them to recover the loan amount by selling the pledged property.

This use of the property as collateral is critical to the functioning of the mortgage market, as it provides assurance to lenders that they have a claim on the asset should the borrower default. The focus here is on the security aspect, which distinguishes a mortgage transaction from other financial obligations, as it specifically ties the loan to the property itself. The other options relate to aspects of the mortgage process, such as financial obligations and interest rates, but they do not capture the essential role of the mortgage as security for repayment.