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ever pondered over the intricacies of a mortgage deed it might sound like complex legal jargon but its actually a crucial piece of the puzzle when it comes to buying a home imagine a mortgage deed as a set in stone agreement between two parties the borrower who is typically a home buyer and the lender usually a bank or other financial institution this agreement is a formal acknowledgement that the property in question is being used as collateral for a loan think of it this way youre borrowing money to buy a house in return youre promising the lender that if you cant pay back the money they can take the house as a form of repayment thats the essential function of a mortgage deed but theres more to it than just that a mortgage deed outlines the nitty-gritty details of this agreement it states the exact loan amount the interest rate youll be paying and the terms for how and when youll pay it back it also clearly defines the rights and responsibilities of both the borrower and the