Mortgages are secured loans. A secured loan is assured by collateral (anything the lender usually takes for those who are unsuccessful to repay the loan. With a mortgage, the housing is the collateral. Collateral lowers the chance with the lender, and subsequently the lender can charge less for the loan. https://andreocpbn.bloggazza.com/27629743/indicators-on-loan-subsidized-you-should-know