By: Maurice King

Collateral Mortgage vs Conventional Mortgage

Tags: Collateral Mortgage vs Conventional Mortgage

 

When applying for a mortgage, we’re familiar with asking about the term, amortization, interest rate, and monthly payments. There’s another aspect to be aware of. Some Mortgage Lenders are now asking Borrowers to sign Collateral Mortgages — and it could result in a Borrower being tied to that Lender for longer than anticipated.

The downsides of a Collateral Mortgage can be summed-up as:

When evaluating mortgage options, understand all the differences.