Q: What is a Mortgage Loan? A: A loan for the purchase or refinance of real property, secured by a lien on the property. Mortgage Loan Uses There are two main uses of a mortgage loan: to purchase a home or refinance a home. A purchase is straightforward; you borrow the amount of money requested at application, and then pay it back over time. The mortgage loan can be used to purchase the following: A primary residence (a home you are going to live in). A second home (a home that you will live in part of the year away from your primary residence) An investment property Refinancing is for borrowers that already own a home who want to change or improve their current mortgage loan. A person can refinance for the following purposes: To get a lower interest rate and/or shorten the term ( term : the time it takes to pay off the mortgage loan). To take cash out of their home for home improvements To take cash out their home to payo...