Mortgage vs. Loan: What's the Difference?
Edited by Sumera Saeed || By Sawaira Riaz || Published on November 19, 2023
Mortgage: Loan specifically for property. Loan: Borrowed money that must be repaid.
Key Differences
A mortgage is a type of loan specifically secured against real estate property. A loan is a broader term, representing any borrowed funds.
Sawaira Riaz
Nov 19, 2023
Mortgages are typically long-term, often lasting 15 to 30 years. Loans can have varied lengths, from short-term to long-term.
Sawaira Riaz
Nov 19, 2023
In a mortgage, the property is collateral; defaulting can lead to foreclosure. In general loans, collateral can vary or be unsecured.
Sawaira Riaz
Nov 19, 2023
Mortgages are primarily used for buying homes. Loans can be used for diverse purposes, including education or personal expenses.
Sawaira Riaz
Nov 19, 2023
The term “mortgage” is exclusively used in real estate context. The term “loan” is used in various financial contexts.
Sara Rehman
Nov 19, 2023
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Mortgage and Loan Definitions
Mortgage
Debt secured by real estate.
Paying off the mortgage was their top priority.
Harlon Moss
Oct 28, 2023
Loan
Agreement between lender and borrower.
They signed the loan document with the bank.
Sara Rehman
Oct 28, 2023
Mortgage
Long-term property loan.
They refinanced their mortgage to lower the interest rate.
Harlon Moss
Oct 28, 2023
Loan
Financial assistance with interest.
He received a low-interest loan for his studies.
Aimie Carlson
Oct 28, 2023
Mortgage
Legal agreement with property as collateral.
Their mortgage agreement was for 30 years.
Sara Rehman
Oct 28, 2023
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Loan
Financial transaction with repayment terms.
Their car was financed through a personal loan.
Sawaira Riaz
Oct 28, 2023
Mortgage
Lender's claim on a borrower's property.
The bank held the mortgage on their home.
Sara Rehman
Oct 28, 2023
Loan
Borrowed money to be repaid.
She applied for a loan to start her business.
Janet White
Oct 28, 2023
Mortgage
A loan for the purchase of real property, secured by a lien on the property.
Sawaira Riaz
Oct 13, 2023
Mortgage
The document specifying the terms and conditions of the repayment of such a loan.
Sawaira Riaz
Oct 13, 2023
Loan
A sum of money that is lent, usually with an interest fee
Took out a loan to buy a car.
Repaid the loan over five years.
Sawaira Riaz
Oct 13, 2023
Mortgage
The repayment obligation associated with such a loan
A family who cannot afford their mortgage.
Sawaira Riaz
Oct 13, 2023
Loan
The agreement or contract specifying the terms and conditions of the repayment of such a sum.
Sawaira Riaz
Oct 13, 2023
Mortgage
The right to payment associated with such a loan
A bank that buys mortgages from originators.
Sawaira Riaz
Oct 13, 2023
Loan
The repayment obligation associated with such an agreement
She couldn't afford the loan after losing her job.
Sawaira Riaz
Oct 13, 2023
Loan
The right to payment associated with such an agreement
A bank that buys consumer loans.
Sawaira Riaz
Oct 13, 2023
Loan
The state of being lent for temporary use
A painting on loan from another museum.
Sawaira Riaz
Oct 13, 2023
Mortgage
To make subject to a claim or risk; pledge against a doubtful outcome
Mortgaged their political careers by taking an unpopular stand.
Sawaira Riaz
Oct 13, 2023
Mortgage
(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.
We're renting a property in the city centre because we can't afford to get a mortgage yet.
Sawaira Riaz
Oct 13, 2023
Loan
An act or instance of lending, an act or instance of granting something for temporary use.
Because of the loan that John made to me, I was able to pay my tuition for the upcoming semester.
Sawaira Riaz
Oct 13, 2023
Loan
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).
All loans from the library, whether books or audio material, must be returned within two weeks.
He got a loan of five thousand pounds.
Sawaira Riaz
Oct 13, 2023
Mortgage
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.
To mortgage a property, an estate, or a shop
We mortgaged our house in order to start a company.
Sawaira Riaz
Oct 13, 2023
Loan
The contract and array of legal or ethical obligations surrounding a loan.
He made a payment on his loan.
Sawaira Riaz
Oct 13, 2023
Mortgage
To pledge and make liable; to make subject to obligation; to achieve an immediate result by paying for it in the long term.
Sawaira Riaz
Oct 13, 2023
Loan
The permission to borrow any item.
Thank you for the loan of your lawn mower.
Sawaira Riaz
Oct 13, 2023
Mortgage
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.
Sawaira Riaz
Oct 13, 2023
Mortgage
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.
Sawaira Riaz
Oct 13, 2023
Mortgage
Hence: To pledge, either literally or figuratively; to make subject to a claim or obligation.
Mortgaging their lives to covetise.
I myself an mortgaged to thy will.
Sawaira Riaz
Oct 13, 2023
Loan
The act of lending; a lending; permission to use; as, the loan of a book, money, services.
Sawaira Riaz
Oct 13, 2023
Mortgage
A conditional conveyance of property as security for the repayment of a loan
Sawaira Riaz
Oct 13, 2023
Loan
That which one lends or borrows, especially a sum of money lent at interest; as, he repaid the loan.
Sawaira Riaz
Oct 13, 2023
Mortgage
Loan for buying property.
They took out a mortgage to buy their first house.
Sawaira Riaz
Oct 28, 2023
Loan
A word borrowed from another language; e.g. `blitz' is a German word borrowed into modern English
Sawaira Riaz
Oct 13, 2023
Loan
Give temporarily; let have for a limited time;
I will lend you my car
Loan me some money
Sawaira Riaz
Oct 13, 2023
Loan
Temporary provision of funds.
The company took out a loan to expand operations.
Sara Rehman
Oct 28, 2023
FAQs
How is a mortgage different from a general loan?
Mortgages are specifically secured against property.
Sawaira Riaz
Nov 19, 2023
What's the role of credit in getting a mortgage?
Good credit can secure better terms.
Sawaira Riaz
Nov 19, 2023
Is a mortgage used for anything other than property?
No, it’s exclusively for real estate.
Harlon Moss
Nov 19, 2023
Are mortgages available for commercial properties?
Yes, commercial mortgages exist.
Sawaira Riaz
Nov 19, 2023
Are student loans different from personal loans?
Yes, student loans are specifically for education.
Sawaira Riaz
Nov 19, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
