Now several options are there before an individual if he wants to purchase a house. The number of lending agents has increased dramatically and very many customer friendly repayment options are there. In the usual case, the lender will be a bank or financial institution. The current interest rates for mortgage loans are extremely low and the borrower has to pay a fixed sum for a long period of time. In most of the cases, the property or the building which has been purchased will serve as the collateral for the loan. In case of default of the loan repayments, the lender has every right to confiscate the property from the owner. Commercial mortgages are a good option for businesses, but the interest rate is a bit higher.