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.

Related Articles
  1. Investing

    Cash Flow Lending Vs. Asset-Based Lending

    When companies need financing, they rely on two primary forms of lending: cash flow-based and asset-based lending. We look at the pros and cons of each.
  2. Retirement

    When Are Mortgage Lenders Better Than Banks?

    Individuals seeking a mortgage loan should consider factors or circumstances that may make a mortgage lender a better choice than a traditional bank.
  3. Investing

    Commercial real estate loans

    Obtaining a commercial real estate loan is quite different from borrowing for residential real estate. Here's what to expect and how to get what you need.
  4. Personal Finance

    How To Apply For a Personal Loan

    Learn about different avenues for applying for a personal loan, and learn valuable tips to help you get your personal loan application approved.
  5. Small Business

    Lending Clubs: Better Than Banks?

    If you need to borrow money and your credit is making it tough, this new option may be just what you're looking for.
  6. Financial Advisor

    Tips To Improve Chances Of A Small Business Loan

    Enhance your small business loan eligibility by keeping these important tips in mind.
  7. Investing

    Homeowners, Beware These Scams!

    If you're in a pinch for money, you're the prime target for con artists and thieves.
  8. Investing

    Financing Basics For First-time Homebuyers

    If you're looking to get your first mortgage, there are many financing options available.
  9. IPF - Mortgage

    Mortgages vs. Home Equity Loans: How They Differ

    Mortgages and home equity loans both use your home value as collateral, but there are different advantages to each.
  10. Tech

    Now You Can Use Bitcoin As Collateral For Loans

    A bunch of startup lenders want to popularize bitcoin as collateral for loans.
Trading Center