Collateral mortgage refers to a type of mortgage where the loan agreement is secured by collateral. There are lenders that offer a borrower’s ability to register collateral for a mortgage up to 125 percent of the mortgage value. This allows a borrower to borrow more funds from the same lender. The amount borrowed the second time is limited and cannot exceed the registered amount when approved without registering an additional mortgage. Once the mortgage repayment term is up, most borrowers have the option
to switch the mortgage form one lender to another to take advantage of lower interest rates. This can only happen in situations where the mortgage is registered as conventional.
Disadvantages of a Collateral Mortgage
Comments are closed
About This Post
Posted by bancy on Oct 17th, 2014 and filed under Finance & Investing. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.