What does Rhode Island law define as a residential mortgage loan?

Rhode Island law defines a residential mortgage loan as a loan primarily for personal or household use that is secured by residential property. This aligns with the common understanding and purpose of residential mortgages, which are typically taken out to finance the purchase of a home where individuals or families reside. The focus on personal or household use indicates that these loans are intended to support living arrangements, as opposed to other types of loans that might be designated for business or investment purposes.

This definition excludes loans secured by commercial property, which are particularly meant for business activities. Investment property loans, while related to real estate, serve a different purpose as they are aimed at properties intended to generate rental income or capital gains rather than serve as a primary residence. Additionally, a loan without a property requirement does not meet the criteria of being a mortgage loan, as the essence of a mortgage involves using real estate as collateral to secure the debt. Thus, the correct definition reinforces the specific nature and intention of residential mortgage loans under Rhode Island law.