Loan vs. Mortgage — What's the Difference?

A transaction resulting in a debt to be settled over time.

A legal agreement wherein property guarantees loan repayment.

A sum of money borrowed to be paid back with interest.

A real estate-secured loan to finance property.

An advance of funds with a promise of return.

A long-term loan for real estate purchase.

Money provided temporarily on the condition of repayment.

A loan secured by the collateral of a property.

In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that debt until it is repaid as well as to repay the principal amount borrowed.

A legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt

An instance of lending

Convey (a property) to a creditor as security on a loan

A sum of money that is lent, usually with an interest fee

A loan for the purchase of real property, secured by a lien on the property.

The agreement or contract specifying the terms and conditions of the repayment of such a sum.

The document specifying the terms and conditions of the repayment of such a loan.

The repayment obligation associated with such an agreement

The repayment obligation associated with such a loan

The right to payment associated with such an agreement

The right to payment associated with such a loan

The state of being lent for temporary use

The lien on the property associated with such a loan.

To lend (money or property).

To pledge (real property) as the security for a loan.

An act or instance of lending, an act or instance of granting something for temporary use.

To make subject to a claim or risk; pledge against a doubtful outcome

A sum of money or other property that a natural or legal person borrows from another with the condition that it be returned or repaid over time or at a later date (sometimes with interest).

(legal) A special form of secured loan where the purpose of the loan must be specified to the lender, to purchase assets that must be fixed (not movable) property, such as a house or piece of farm land. The assets are registered as the legal property of the borrower but the lender can seize them and dispose of them if they are not satisfied with the manner in which the repayment of the loan is conducted by the borrower. Once the loan is fully repaid, the lender loses this right of seizure and the assets are then deemed to be unencumbered.

The contract and array of legal or ethical obligations surrounding a loan.

(obsolete) State of being pledged.

The permission to borrow any item.

To borrow against a property, to obtain a loan for another purpose by giving away the right of seizure to the lender over a fixed property such as a house or piece of land; to pledge a property in order to get a loan.

(Scotland) A lonnen.

To pledge and make liable; to make subject to obligation; to achieve an immediate result by paying for it in the long term.

To lend (something) to (someone).

A conveyance of property, upon condition, as security for the payment of a debt or the preformance of a duty, and to become void upon payment or performance according to the stipulated terms; also, the written instrument by which the conveyance is made.

A loanin.

State of being pledged; as, lands given in mortgage.

The act of lending; a lending; permission to use; as, the loan of a book, money, services.

To grant or convey, as property, for the security of a debt, or other engagement, upon a condition that if the debt or engagement shall be discharged according to the contract, the conveyance shall be void, otherwise to become absolute, subject, however, to the right of redemption.

That which one lends or borrows, especially a sum of money lent at interest; as, he repaid the loan.

Hence: To pledge, either literally or figuratively; to make subject to a claim or obligation.

To lend; - sometimes with out.

A conditional conveyance of property as security for the repayment of a loan

The temporary provision of money (usually at interest)

Put up as security or collateral

A word borrowed from another language; e.g. `blitz' is a German word borrowed into modern English

Borrowing for property with the property as security.

Give temporarily; let have for a limited time;

A financial agreement between a lender and a borrower.

Defaulting on a mortgage can lead to foreclosure, where the lender takes the property.

A loan is money borrowed for various purposes, while a mortgage is specifically for real estate.

No, only loans secured by real estate are mortgages.

Yes, mortgages can be for any real estate, including commercial properties.

It's the initial amount borrowed, excluding interest.

Typically, yes. Lenders charge interest as compensation for the risk and time value of money.

It often includes principal repayment, interest, taxes, and insurance.

It depends on the terms. Some have prepayment penalties, while others don't.

Not necessarily; mortgages often have lower rates because they're secured by valuable property.

A fixed-rate mortgage has a constant interest rate, while an adjustable-rate can change over time.

Leveraging a mortgage can preserve cash flow, take advantage of tax deductions, or invest elsewhere.

Yes, but approval depends on factors like creditworthiness and debt-to-income ratio.

It means replacing the current mortgage with a new one, often with better terms or rates.

No, some loans are unsecured, but they might have higher interest rates.

No, loans can also be offered by credit unions, online lenders, and other financial institutions.