If you view the loan as a combination of variables rather than as one bottom line, you'll have an easier time deciding which loan is right for you. Again, try not to consider which type of financing will be the cheapest, but rather which is the best for your particular situation. Buying a co-op . When you buy a co-op, you are actually buying stock in a corporation, rather than owning the title to the property itself. These shares are financed as personal loans rather than as mortgages.
Most banks require the co-op shares as collateral for the personal loan.
Buying a condo or townhouse . Condo and townhouse Buyers take out mortgages rather than personal loans to finance their real estate purchases. Different Types of Mortgages Fixed-rate mortgages feature fixed interest rates and equal monthly payments for a term of 15 to 30 years. Each monthly payment consists of principal and interest payments. At the beginning of the repayment cycle, the monthly payment represents for the most part, interest payments only.