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mariarad [96]
3 years ago
5

How are mortgage and auto loans similar?

Social Studies
2 answers:
Aneli [31]3 years ago
7 0
Both are less risky for lenders. Hope I helped you! :)
Yuki888 [10]3 years ago
3 0

The item purchased is used as collateral.

The item bought is utilized as collateral in both mortgage and auto loans. If you take out credit on a mortgage or an automobile and if you do not pay back debts, you are subjected to dissipating the article because the lenders utilize them as security. Collateral is added word for protection which is what guarantees the moneylenders they will not lose their money if the borrower defaults to pay back the amount and hold their collateral.

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