Which characteristic applies to a mortgage loan?

A mortgage loan is characterized by several key features that differentiate it from other types of loans. The first characteristic is that it is secured by real property, meaning that the loan is backed by an asset, specifically the property being financed. This security interest allows the lender to take possession of the property if the borrower defaults on the loan.

Another important characteristic is the term of the loan, which can extend up to 30 years. This long-term structure is common in mortgage financing, allowing borrowers to manage payments over an extended period, making the loan more affordable on a month-to-month basis.

Additionally, mortgage loans typically require scheduled principal and interest payments. This structured payment plan helps borrowers gradually pay down their debt while the lender earns interest over the life of the loan.

Given that all of these characteristics—securing the loan by real property, potentially having a term of up to 30 years, and requiring regular scheduled payments—are fundamental to the nature of mortgage loans, the option encompassing all these features is indeed the most accurate. This comprehensive view captures the essential aspects that define a mortgage loan and reflects the principles of mortgage lending as outlined in the CFPB's regulations.