What does it mean to use my house as collateral?

When you borrow money and "guarantee" the financing with equity in your home, you use your home as collateral

This means that if you default on the financing, the lender can keep your home to pay off your loan

If you default on the financing If you can't pay, you could lose your home and your

what you owe on your mortgage and what you could get for your home if you sold it

between High interest rates, Finance charges, and other credit and closing costs can also increase the cost of borrowing money

How can I reduce my risk of borrowing by putting my home as collateral?

If you can't pay back, you could lose your home to foreclosure

Talk to a lawyer, financial advisor or someone else you trust before making any decisions