A loan primarily for personal use and secured by residential property is known as what?

A loan primarily for personal use and secured by residential property is known as a home mortgage loan. This type of loan is specifically designed to finance the purchase of a home or to refinance an existing residential mortgage. It is secured by the property itself, meaning that the lender has a legal claim to the property should the borrower default on their payments.

A home mortgage loan is tailored for individuals looking to buy a home, allowing them to borrow a significant sum of money to do so, usually with a long repayment term that can extend up to 30 years. This loan typically requires the borrower to make regular monthly payments that include both principal and interest, as well as property taxes and homeowners insurance in many cases.

In contrast, other options do not fit this definition. A business loan is intended for funding a business venture and is not secured by residential property. A home equity line of credit (HELOC) allows homeowners to borrow against the equity in their home but is a form of revolving credit rather than a traditional mortgage. A personal line of credit is an unsecured loan that can be used for various personal needs, but it does not involve collateral like a home mortgage does. Thus, the specificity of a home mortgage loan as relating directly to personal use secured by residential