What is a Mortgage and How Does it Differ from a Deed of Trust?

Answered by

Ray Patterson
Ray PattersonPublished Insurance Expert

Posted on Jan 19, 2023

A mortgage is a loan used to purchase a home. The loan is secured by the home itself, which is why it is also called a "mortgage loan." The lender holds a security interest in the home until the loan is paid off.

A deed of trust is similar to a mortgage, but it is used in some states instead of a mortgage. The deed of trust is also used to secure a loan to purchase a home. The key difference is that the trustee, rather than the lender, holds the security interest in the home.

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