A “residential mortgage loan” is similarly defined to mean any loan primarily for personal, family or household use that is secured by a mortgage, deed of trust or other equivalent consensual security interest on a dwelling or on land on which a person intends to construct a dwelling. A “dwelling” is defined as a residential structure or mobile home which contains one to four family housing units, or individual units of condominiums or cooperatives.

A commercial mortgage is a loan given to a business to buy a commercial property. The loan-to-value ratio may be lower for a commercial mortgage, meaning less of the total value of the property is covered by the loan. The interest rate on a commercial mortgage is higher than on a residential mortgage.

A HELOC resembles a second mortgage but functions like a credit card. HELOC funds can be drawn when you need the money instead of taken in a lump sum, as is common with second mortgages, which also are called home equity loans. You can access HELOC funds when you want but cannot exceed the amount set when you signed for the credit line.

A private mortgage is a home loan financed through a private source of funds rather than through a traditional mortgage lender. It can come in handy for people who struggle to get a mortgage the typical way. Private mortgage lenders can be individuals or institutions who can be thought of as angel investors. Private mortgage lenders look beyond bad credit histories and numbers, and try and assess each case individually as a potential investment opportunity. Some private lenders even like to meet the borrowers in person to assess suitability for their investment. They usually charge a higher rate of interest, but the process of getting a loan from them is much faster and easier.

A loan is a form of debt incurred by a small business. The lender, usually a corporation, financial institution, or government, advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions. Most small businesses request financing to purchase fixed assets and to support day to day working and operational capital expenditures. This could include cash flow, vehicles, upgrading equipment, inventory, renovations, staffing, marketing, tax payments, or supplier payments.

Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts. Multiple debts are combined into a single, larger debt, such as a loan, usually with more favorable payoff terms—a lower interest rate, lower monthly payment, or both. Debt consolidation can be used as a tool to deal with student loan debt, credit card debt and other liabilities.