What is the difference between Mortgage and a loan?
What is the difference between Mortgage and a loan?
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ANSWERS: 11
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A loan could be for anything (car, boat, college, just to have money to throw around), a mortgage is a home loan.
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youre not borrowing nnoney with a nnortage, youre just paying it off in installnnents
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Archie Bunker You are actually borrowing money.
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A mortgage is exclusively for buying off a home. Its kind of like rent only for a permanent home. Loans are for anything one can purchase. I used to know a man who works in the mortgage dept. of a local bank. It is his responsibilty who gets a mortgage.
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Both are loans to enable you to buy something. But a mortgage is a loan solely to buy property. It is generally for a far larger amount and for a longer term than your average loan
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Both are loans to enable you to buy something. But a mortgage is a loan solely to buy property. It is generally for a far larger amount and for a longer term than your average loan
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Both are loans to enable you to buy something. But a mortgage is a loan solely to buy property. It is generally for a far larger amount and for a longer term than your average loan
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In legal terms, a mortgage is technically a deed to your property. It gives the mortgagor the right to take the property if the loan is not repaid. It's possible to have a loan to buy property that isn't secured by a mortgage, meaning the person loaning you the money does not have the right to take the property in case of default, but you're not likely to find those outside of deals within a family. Old-school mortgages read just like deeds, conveying property from borrower to lender, with a paragraph near the end starting "Provided nevertheless if..." followed by the agreement to pay back the money.
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All mortgages are loans. Not all loans are mortgages. A mortgage is specifically a loan for a residential dwelling like a house or condo. You can get non-mortgage loans for many other items of collateral or property - boats, buildings, vehicles, education, raw - undeveloped land, personal/signature loans for other things like gifts, vacations, etc.
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"Loan" is a general term. A "mortgage" is a specific type of loan, intended to help someone purchase property. The price of property is normally too high for most people to pay cash upfront, so a mortgage spreads the repayments out over a very long period of time.
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A mortgage is a large amount of money, borrowed, usually, from a building society, to be used to buy a home and will be paid back in instalments on a regular basis, over many years in most cases. A loan is usually for a much smaller amount and will have to be paid back by a specific date (usually in one lump sum).
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A loan is a generic term that covers many types of lending. It could be an auto loan a personal loan, a student loan, etc.... either secured or unsecured. A mortgage is specifically a loan on real property where the mortgage is the instrument that secures the house as colateral loan
pearllederman 
mugwort 
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