What’s the definition of a home collateral mortgage? A property security loan merely exactly what it appears like that loan that makes use of your house equity given that equity. If for example the household protects financing, they influences you in two means you suppose particular exposure as if your fail to make your repayments, the lending company can also be foreclose or take your house. However, as family security funds try less risky so you can lenders than signature loans (including signature loans otherwise playing cards), they come having straight down interest rates.