It is a secured loan with a fixed interest rate and can be paid off within 15 to 30 years. Some sellers may even ask for a mortgage approval letter before they allow you to view their home. A mortgage is a type of loan that’s used to finance the property. A mortgage is a type of loan, but not all loans are mortgages. Mortgages are “secured” loans. With a secured loan, the borrower promises collateral to the lender in the event that they stop making payments. In the case of a mortgage, the collateral is the home.