What is the name of the legal agreement between a creditor and borrower where the creditor lends money with interest for property purchase?

The correct answer is the name of the legal agreement that involves a creditor lending money, typically for the purchase of real property, and is referred to as a mortgage. A mortgage is specifically used in real estate transactions where 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.

The mortgage agreement outlines the terms of the loan, including the interest rate, repayment schedule, and the obligations of both parties involved in the transaction. This legal framework secures the lender's investment by ensuring that they have a claim to the property until the debt is fully repaid. Understanding this concept is crucial in real estate as it integrates financial and legal principles in property transactions.