What's the difference betwn collateral and mortgage?

Hi,Very simply put, Collateral is an asset, security or guarantee that is pledged for repayment. A Mortgage is a debt that secures the Collateral for a Lender. Most of the time when you get a mortgage, a piece of property or land is used as Collateral. The Lender secures the Mortgage to the Collateral, records the Mortgage on the Land Records so everyone knows that the Collateral is encumbered or given as security to repay the mortgage and the Mortgage allows the Lender to foreclose on the Collateral if the Mortgage isn't paid on time.I hope this answered your question. Please feel free to reach out to me at dotty1025@gmail.com. Dotty Owens, Northeast Financial, NMLS # 70977

Collateral is an asset, Mortgage is a debt that secures the Collateral simply put.