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What is the difference between a mortgage and a loan?
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The main difference between a mortgage and a loan is that a mortgage is specifically used to purchase a home while a loan is a more general borrowing of money with a set payment plan. A mortgage typically involves a secured loan which means the lender will have rights to the property if the mortgage is not repaid. Generally, for a loan, the borrower provides the lender with some form of collateral. With a mortgage, the borrower will have to make regular repayments over a set period of time, but with a loan, the repayment terms and amount may be more flexible.