Definition: The word "mortgage" typically refers to a type of loan that allows individuals to borrow money with a lender who has the right to sell the collateral (usually the property) for repayment. This means that if the borrower defaults on their payments, the lender will be able to seize the property and recoup any interest or penalties they have paid over the life of the loan. The word "equity loan" refers to a type of loan where the borrower has the right to take back the collateral (usually the property) from the lender if the borrower defaults on their payments. This means that the borrower can use the money from the loan towards paying off any remaining debts or making other necessary expenditures, rather than having to repay the entire amount at once. In summary, "mortgage" refers to a type of loan where the borrower has the right to take back the collateral if they default on their payments. It is similar to an equity loan in that it allows for some form of repayment towards paying off any remaining debts or other expenses.
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