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Is a Home Loan the Same as a Mortgage?

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The words home loan and mortgage are used interchangeably. By definition they don’t mean the same. Specifically speaking, the home loan is an agreement that you sign which gives the lender the authority to take action against you if you don’t fulfill your end of the agreement by making your monthly payment. The mortgage can be thought of as the collateral of the agreement. As collateral, that means that if you don’t pay back the loan per the agreement you signed, the bank can foreclose and take back the home.

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