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Mortgage Company Plantation, FL | Mortgage Loan Company Near Me

The Difference Between Secured and Unsecured Loans

If you are considering a loan, you have two potential options: Secured and Unsecured loan. Loans that are secured are those that use some form of collateral, while loans that are unsecured do not. Let's take a closer look at these differences.    What it Means if a Loan is Secured  A secured loan is a type of loan that is backed by collateral. This means that if the borrower defaults on the loan, the lender has the right to seize the collateral to recoup their losses.   The most common form of collateral is a home, which is why loans that are secured are also known as home equity loans. To qualify for a secured loan, borrowers must have sufficient equity in their homes. Equity is the portion of the…

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