What is a difference between a mortgage and a mortgage loan? Mortgage is a product dedicated to finance a defined property. While mortgage loan is a product for people who own a property, which is not mortgaged, but are looking to obtain financing for any purpose. The mortgage loan may also be secured by a third party owned property, if the party agrees.
For people who may establish the collateral on real estate, the mortgage is therefore an alternative to a cash loan. However, it has a lot of advantages over a standard cash loan, some of which are:
- higher amount of mortgage loan,
- longer repayment period,
- lower lending rates.