Personal Finance & Money Asked by piny on June 14, 2021
From what I understand, a mortgage is a loan secured by real estate. Thus under this definition you should also be able to buy land (secured by the land). Is this true? If it is how come there are stuff called land loans? Do they also technically count as mortgages? Also, this definition doesn’t specify what you can do with the amount loaned out, can you buy whatever you want as long as you have some sort of real estate property as collateral (in terms of a technical sense, I’m not asking if this is practically possible)
Did some research and it turns out a land loan counts as a mortgage and no, mortgages aren't strictly for buying real estate only (an example of this would be home equity loans which count as mortgages)
Answered by piny on June 14, 2021
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