Which type of loan is often secured against the property being purchased?

• A. Personal loan
• B. Home equity loan
• C. Mortgage loan
• D. Unsecured loan

Answer: (C)

A mortgage loan is specifically designed for purchasing real estate and is secured by the property itself. This means that if the borrower defaults on the loan, the lender has the legal right to foreclose on the property to recover the owed amount. This security makes mortgage loans a common form of financing for home purchases.

In contrast, personal loans and unsecured loans do not require collateral, which means they are not secured against any property. While a home equity loan is secured against the value of a home that the borrower already owns, it is not used to purchase a property but rather to borrow against it. This delineates mortgage loans as the primary choice for financing the direct purchase of real estate.