Mortgage vs Deed of Trust

Let’s begin by talking about their similarities. 

Both mortgages and deeds of trust are instruments that homebuyers use to purchase properties when they are borrowing money. 

The state where the property is located usually determines which method is used. 

In either case:

Your property is used as collateral for the loan to buy it. 

If you don’t make your payments, they can and will take the property from you.

You don’t get to choose which document is used. 

So does it make any practical difference to you? Not really.

To dig deeper into the differences and see which states use which documents, click here.

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