Definition: Mortgage, in English as a term often associated with mortgages, refers to an obligation of the borrower to repay the amount borrowed against the property of the borrower or its owner. A home equity loan, on the other hand, refers to a loan that is secured by the borrower's personal assets, such as credit cards, vehicles, or real estate. In general, a mortgage involves financing the purchase of a house, whereas a home equity loan allows an individual to borrow money against their own property. The amount borrowed may be used for various purposes, including repaying debts, investing, and building equity in the home. It's important to note that both terms are often used interchangeably and may refer to different things altogether. The term 'mortgage' is a more formal term than 'home equity loan', as it refers to an obligation of the borrower to repay against the property of the borrower or its owner, while a home equity loan simply allows borrowing money on the property itself.
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