A real estate loan is a type of financing used to purchase or refinance property, such as a house or commercial building. Borrowers typically receive a lump sum from a lender, which they agree to pay back over time with interest. The property itself often serves as collateral, meaning the lender can take possession if the borrower fails to repay the loan. These loans come in various forms, including fixed-rate mortgages and adjustable-rate mortgages. The terms, interest rates, and repayment schedules can vary widely, depending on factors like the borrower's creditworthiness and the lender's policies.