Borrowing against collateral means the lender has something to seize if you fail to pay them back. The more valuable the collateral, the more money the lender w

Borrowing against collateral means the lender has something to seize if you fail to pay them back. The more valuable the collateral, the more money the lender will recover when they repossess and sell the collateral. This likelihood of recovery (if you default!) may make them willing to lend you more money, or give you a better interest rate.