National and UST Mortgage 1 Practice Exam 2025 – Your All-in-One Guide to Mastering the Mortgage Exam!

The promissory note is a crucial financial document that serves as evidence of the debt and a promise to repay borrowed money. It is a legal instrument that outlines the terms of the loan, including the amount borrowed, the interest rate, the repayment schedule, and the maturity date. By signing the promissory note, the borrower formally agrees to repay the lender and acknowledges the obligations associated with the debt.

In contrast, although a mortgage involves the real property and secures the loan by allowing the lender to take possession of the property if the borrower defaults, it does not itself document the borrower's promise to pay back the loan. A deed, on the other hand, is a legal instrument used to transfer ownership of property and does not pertain directly to the obligations of a borrower regarding repayment. A title policy is an insurance product that protects against losses due to defects in the title of the property and is unrelated to the borrower's promise to repay the loan. Therefore, the promissory note is the correct choice as it is explicitly designed to fulfill the purpose of documenting the debt and the borrower's commitment to repayment.