Types of Loans in the US: Mortgage, Auto, Student
Introduction
Loans are a common part of American financial life. But not all loans are the same. Let’s review the main types.
Mortgage Loans
- Used to buy homes.
- Usually 15–30 years.
- Backed by the house as collateral.
Auto Loans
- For buying cars.
- 3–7 year terms are common.
- Lower interest than personal loans, but car depreciates fast.
Student Loans
- Federal (better rates, forgiveness programs).
- Private (higher rates, fewer protections).
Personal Loans
- Flexible use (debt consolidation, medical bills).
- Often higher interest rates.
Choosing the Right Loan
It depends on your needs, credit score, and ability to repay.
Sources
Disclaimer: This article is for educational purposes only and does not constitute financial advice.