Basically, both mortgages and loans are loans of money may be paid by a lender that will be returned in the form of monthly installments. The big difference is in how the funding will be used: as far as the mortgage, usually this is used for the purchase of a home. This loan is designed solely for this purpose and the funds can not be used for other consumption.

In addition, being a significant capital, usually in the long term requires guarantees series, such as, for example, the mortgage. The mortgage provides for the acquisition of property by the lender in case where the individual has requested the loan, is insolvent. By contract the parties will decide whether a fixed rate mortgage or an adjustable rate mortgage.

Another classic example is the mortgage loan aims to buy this car.

In contrast, loans not finalized, are easier to obtain, since it does not require the provision of security to the customer, in practice the claimant can do what he wants the money that has been served.

To investigate the various types of loan and choose the most suitable, read the articles: Loans finalized, unfinalized Loans, Personal Loans, Mortgage first home, financing companies.