Which type of loan is typically secured by real property?

A mortgage loan is specifically designed to be secured by real property, such as a home or commercial building. This means that the property itself serves as collateral for the loan. If the borrower fails to repay the loan, the lender has the legal right to foreclose on the property and sell it to recover the amount owed. This security provides lenders with a lower risk compared to unsecured loans, allowing borrowers to often obtain better interest rates and terms.

In contrast, personal loans, credit card debt, and unsecured loans do not involve real property as collateral. Personal loans and unsecured loans typically rely solely on the borrower's creditworthiness, while credit card debt is revolving credit that does not involve any specific asset securing it. Therefore, these types of loans do not have the same legal claim on real estate that a mortgage does.