Mortgage loan as a secured loan. Mortgage loan needs a house from the loan applicants and use that house as a collateral in order the lender give the loan. Without a house as collateral then the lender can not accept the loan. In a secured loan, when you can not pay the loan on time, the lender can take your house. Mortgage company can also take your house if you have a mortgage loan and can not pay the loan on time. Foreclosure is used by the lender to pay your loan. This kind of loan which uses a house as the collateral or hostage by the lender can give the lender a security. The lender will give the loan not more than the price of the house. We can say that the lender take the advantage from the deviation between the house price and the cash loan they give.

The mortgage lender does not only take your house as their advantage, they also charge you an interest rates. So when the borrower can pay the loan on time, then the mortgage lender or secured loan lender can take their profit from the interest. You as the borrower needs to find the mortgage lender that can give you the best rates.