A loan and a mortgage are two different financial concepts, but they are related in that a mortgage is a type of loan.
A loan is an amount of money that is borrowed from a lender, which can be used for various purposes. Loans must be repaid with interest over a set period of time, as agreed upon in the loan contract. Loans can be secured or unsecured, meaning that they may or may not require collateral to be pledged by the borrower to secure the loan.
A mortgage, on the other hand, is a specific type of loan that is used to purchase real estate. Mortgages are usually long-term loans that are secured by the property being purchased, meaning that the lender has the right to seize the property if the borrower defaults on the loan. Mortgages often have lower interest rates than other types of loans, as the property serves as collateral and reduces the risk for the lender.
In summary, while all mortgages are loans, not all loans are mortgages. Mortgages are a type of loan that is specifically used to purchase real estate, while loans can be used for various purposes and may or may not require collateral.
