Which of the following statements is usually true about mortgages?

Mortgages are generally classified as secured loans, which means they are backed by collateral—in this case, real property. When a borrower takes out a mortgage, they create a legal obligation to repay the loan, and the property itself serves as security for that obligation. This arrangement provides lenders with assurance that they can reclaim the property through foreclosure if the borrower fails to meet their repayment obligations. The security interest aligned with the property mitigates the lender's risk, which is a standard practice in mortgage agreements.

While it's true that many mortgages include provisions related to insurance, such as property insurance or mortgage insurance, it is not a universal requirement for every mortgage. Additionally, mortgages do not guarantee personal credit; rather, they may depend on the borrower's creditworthiness but do not serve as a guarantee of credit in any general sense. Finally, mortgages do not need to be registered with the federal government, although they must comply with state laws, and while they are often recorded with local government offices to provide public notice of the lender's security interest, federal registration is not a standard requirement. This foundational understanding of the nature of mortgages highlights why the statement about them being secured by real property is universally true.