Definition: The term "mortgage vs loan" refers to two primary forms of financing: a mortgage and a loan.
1.
Mortgage
: In a mortgage, the borrower agrees to pay a fixed amount of money (the principal) to the lender on a specified period of time or for a specific purpose (such as buying a property). The term "loan" refers to the repayment period of the mortgage. The borrower usually pays back the principal over time in accordance with the terms of the loan.
2.
Loan
: In contrast, a loan is a financial commitment from the lender to another party (the borrower) that is typically for a specified amount and for a fixed term, such as 30 years or until the end of the borrower's employment contract. The borrower agrees to repay the loan with interest over time in accordance with the terms of the loan agreement.
In summary, the difference between mortgage vs loan is related to the type of payment made by the lender (the principal) and the repayment period (the term).
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