What is the primary purpose of a mortgage?

The primary purpose of a mortgage is to secure a loan used to purchase property. When a borrower takes out a mortgage, they are essentially borrowing money from a lender to buy real estate, and the property itself serves as collateral for the loan. This means that if the borrower fails to repay the loan, the lender has the right to take possession of the property through foreclosure.

Mortgages are structured to allow individuals to afford real estate investments that they would not be able to purchase outright, as they typically involve large sums of money and long repayment periods. This arrangement makes homeownership more accessible to a greater number of people, as it provides a practical means for financing a significant purchase.

In contrast, options that mention covering living expenses, paying for unrelated services like property appraisal, or providing insurance do not capture the fundamental role of a mortgage in financing and securing property ownership. Instead, these options focus on aspects that may ancillary to the mortgage process but do not represent the central function of a mortgage itself.