What is collateral?

What is collateral?

Ron Goodlin (Mortgage Banker and Broker, The Goodlin Group) gives expert video advice on: When do I apply for a mortgage loan?; Who can help me apply for a mortgage loan?; What is collateral? and more...

Collateral, I really call that equity; how much equity you have in your home. Take for example, you have a property that's worth a million dollars, your first mortgage loan amount is $500,000 therefore you have $500,000 of equity sitting in your home.