Question

A homeowner borrows money from a lender and gives the lender a mortgage on the property as collateral for the loan. The homeowner retains title to the property. This is an example of:______.

Answer 1

Answer:

secured loan

Explanation:

secured loan or collateral loan: it is a loan in which a personal property is used to secured the loan

A secured loan is a loan in which the borrower use some personal asset as collateral for the loan.

The homeowner retains title to the property if he repays backs all the money to the lender on or before the due date.