A real estate loan is a type of financing used to purchase or refinance property, such as a home or commercial building. These loans are typically secured by the property itself, meaning that if the borrower fails to repay, the lender can take possession of the property through a process called foreclosure. There are various types of real estate loans, including mortgages, which are commonly used for residential properties, and commercial loans, which are designed for business properties. Borrowers usually pay back the loan in monthly installments over a set period, often ranging from 15 to 30 years.