I’ve heard both the phrases mortgage and home loan used, and I was wondering if they are the same thing or not.
These two are closely intertwined, so it is definitely understandable to wonder if they are the same thing. A home loan is the actual money you take out to pay for your home, while mortgages are legal documents that show your agreement and obligation to repay your debt to the lender. Mortgages are types of loans secured for real estate that you need to pay back in full to fully own the property, so if you don’t pay back your mortgage payments, your bank could foreclose on your property.
When you take out a home loan to purchase your home, you then sign a mortgage agreeing to pay back the home loan in monthly installments. Essentially, the mortgage is the legal agreement and the home loan is simply the money itself borrowed.