ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mortgage loan is a secured loan. It is secured against your property. The bank or lender has the right to repossess your property if you can’t repay your loan. A mortgage loan helps you buy your own house.

Detailed explanation-2: -When you take out a mortgage, your home becomes the collateral. If you take out a car loan, then the car is the collateral for the loan. The types of collateral that lenders commonly accept include cars-only if they are paid off in full-bank savings deposits, and investment accounts.

Detailed explanation-3: -A collateral loan is often called a secured loan. This means the loan is guaranteed by something you own. And if you can’t pay your loan back, the lender has the right to claim the collateral, whether it’s a… Car. Savings account.

Detailed explanation-4: -Collateral acts as an insurance policy for lenders which can be sold to recover losses when a borrower defaults on their loan. • A mortgage is a loan that is taken out by keeping a real estate asset as collateral. A mortgage will be taken out by a company or an individual who wishes to purchase a real estate asset.

Detailed explanation-5: -A mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest. Mortgage loans are used to buy a home or to borrow money against the value of a home you already own.