Direct Private Capital Group, Inc.

Trust loans are also known as “home equity loans” or “second mortgages.” This type of loan is usually provided by a financial institution and secured by your home. The amount you can borrow will be based on the equity in your home and how much that equity is worth compared with what you owe on the property.

Because a trust loan is secured against your home, it will affect your eligibility for any other loans or credit cards that require a good credit rating (including car insurance). If you miss repayments on an unsecured loan, you won’t lose anything apart from fees and interest payments – but if you don’t pay back an unsecured trust loan on time, the lender could repossess your house or sell it at auction to recover their money.