These two words can often be confusing, especially in writing. So let's clarify the difference this morning.
LOSE is a verb. The word rhymes with whose. It means that you misplace or fail to keep something, or you do not win. For example, if you go on a diet, you will LOSE weight.
LOOSE is an adjective. The word rhymes with goose. It means that something is not tight. For example, if you go on a diet, you will probably notice your clothes becoming LOOSE.
Loose is primarily used as an adjective, but it can also serve as a verb. This definition means something is released (Once his kidnappers left, the smart young man loosed the ropes which bound his hands together).