Collateral is the asset pledged as security for a debt. When borrowers get a mortgage, the home is considered collateral. Borrowers risk losing the collateral if they don’t repay the debt according to the terms of the mortgage.
Collateral is the asset pledged as security for a debt. When borrowers get a mortgage, the home is considered collateral. Borrowers risk losing the collateral if they don’t repay the debt according to the terms of the mortgage.