Definition: The term "mortgage" refers to a loan that provides financing for buying, building or refinancing a property. It involves borrowing money from an lender (often a bank) in exchange for ownership of the property being purchased. Mortgages are typically used when someone wants to purchase a home as their main residence, but does not have enough savings to purchase it outright. The term "home loans" refers to the type of mortgage where the borrower is given a loan from an individual or financial institution to finance their own home purchase. Home loans can be either fixed-rate or adjustable-rate loans, and they are typically secured by the property being bought as security for the loan. Both terms have different purposes: 1. "Mortgage" typically refers to financing a property for purchase rather than building one from scratch. 2. "Home loans" refer to the type of mortgage that allows individuals to finance their home purchase, providing funding in exchange for ownership of the property being purchased.
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