3 Assets You Can Use as Mortgage Collateral

Instead of using your property as mortgage collateral, you may want to consider using other assets in your possession to secure your mortgage loan. One benefit of an asset-based mortgage loan is that if for some reason you have to default on your loan, you only lose the assets you pledged as collateral, and not your home.

1. Stocks

The shares of a stock that you bought can be used as mortgage collateral. The amount the lender will give you depends on the stock's value, and their loan-to-value criteria as determined by their lending policy.

2. Savings Account

If you have a savings account, that can be used for an asset-based mortgage. The loanable amount will depend on the savings account size, and the percentage of that amount the lender allows to be used as security on your loan.

3. Certificate of Deposit

A certificate of deposit, or CD, can be used as collateral for an asset-based mortgage. One thing to consider is the rate of the CD vs. the interest rate of the mortgage. Make sure you understand the terms and conditions of pledging a CD or any other asset for your mortgage loan.