Collateral Mortgage

• Collateral Mortgage

·         Is a mortgage in which your lender can lend you more money as your property value increases without needing to refinance your mortgage. It’s a good option if you think you’ll need another loan in the future. If you fell behind on payments, however, the bank has the right to raise your interest rate by as much as 10 percentage points. It is not transferrable to another lender, even at the end of the loan term, and that fact has made it a very attractive product for banks who want to retain their customers. Some banks only offer collateral mortgages, so be sure to read the fine print and ensure that you’re getting

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