How is a residential mortgage loan primarily defined in Rhode Island?

A residential mortgage loan in Rhode Island is primarily defined as a loan that is used mainly for personal use, specifically to finance the purchase or refinancing of a home. This definition captures the essence of what residential mortgages are designed to accomplish—they provide individuals and families with the necessary funds to acquire a residence where they will live.

Personal use in this context generally refers to properties that are intended for the borrower's primary residence, rather than for commercial or investment purposes. This aspect distinguishes residential mortgages from other types of loans, such as those secured by commercial property or intended for investment purposes, which serve different markets and borrower needs.

Other options, like loans secured by commercial property, primarily for investment purposes, or primarily for business expansion, do not align with the primary intent behind residential mortgage loans. Such loans target the business sector, not the individual's need for shelter and personal living space. Thus, the definition as a loan primarily for personal use accurately reflects the specific purpose of residential mortgages in Rhode Island.