Question

What is collateral explian

Answer 1

DEFINITION of 'Collateral' ... Sincecollateral offers some security to the lender should the borrower fail to pay back the loan, loans that are secured by collateral typically have lower interest rates than unsecured loans. A lender's claim to a borrower'scollateral is called a lien.

Answer 2

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.