Mortgage loans are a specific type of secured loan where real estate serves as collateral. Secured loans broadly involve borrowing against tangible assets like vehicles, equipment, or property. The primary distinction lies in collateral type and purpose: mortgages are exclusively for real estate, while secured loans can cover diverse assets. Mortgages typically have longer terms (15-30 years) and lower interest rates due to stable collateral, whereas secured loans vary by asset and term.

The differentiation stems from risk mitigation and regulatory frameworks. Mortgages dominate the residential lending market, accounting for approximately 75% of all secured loans in the U.S. (Federal Reserve, 2022). This concentration reflects real estate’s stability as collateral, with default rates averaging 2.3% for mortgages versus 5.1% for other secured loans (Consumer Financial Protection Bureau, 2023). Regulatory bodies like the FHFA enforce stricter underwriting for mortgages, ensuring alignment with long-term housing stability. Conversely, secured loans for business equipment or vehicles face less stringent scrutiny, reflecting shorter repayment horizons and higher asset liquidity. Data from the U.S. Bankers Association shows 68% of secured loans are non-real estate, underscoring the niche role of mortgages. This structure balances lender risk with borrower accessibility, ensuring mortgages remain critical to homeownership while secured loans support broader economic activity.