What Is Collateral?



Next video:
Loading the player...

Collateral is property or other assets that a borrower offers a lender to secure a loan.

The day all the loan is paid off by the borrower is the day the home will no longer be collateral, and the lender won’t have any rights to the asset.

You May Also Like

Related Articles
  1. Investing Basics

    Understanding Compound Interest

  2. Home & Auto

    What Is A Mortgage?

  3. Investing

    Overnight Rate

  4. Home & Auto

    Reverse Mortgage

  5. Credit & Loans

    APR vs. APY

  6. Budgeting

    Explaining Underwater Loans

  7. Stock Analysis

    How Chimera Investment Bear The Brunt Of REITst?

Trading Center