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Guest

I just converted my loan over to an open end mortgage with Citizens Bank.
I was able to pay off all my debt and lower my monthly payments. You have to pay the interest on the loan for the first 10 yrs. During that time you can pay and borrow as much as you want. After that for the next 15 years you have to pay back the loan. I am happy with this so far. I am out of debt and I have the freedom to adjust my payments if need be.

gmakerley · Posted: Fri Oct 02, 2009 10:31 am Post subject:

chris, it is an excellent idea to ignore the interest-only aspect of your new loan and to repay the principal balance as much as you are able. this will not only reduce your overall debt, but decrease the amount of interest you pay and make it easier to avoid difficulty in the future.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

Thats really a very interestign concept

How much you borrow wil be based on the total value of the property

gmakerley · Posted: Mon Oct 05, 2009 8:08 am Post subject:

puzzlement abounds

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

The world we live in is filled with lot of these puzzles

Guest

I also read about the Open end mortgage in Debt Cures but am not able to find info. on how to do it. sounds like a it would work if a mortgage company would make that type of loan. Right now I divide my morgage payment by 12 and add that amount to my monthly payment to reduce the length of my loan. It gives me one extra payment a year and reduces my term by about 5 years or so. Wish there was a better solution as refinancing is so expensive and then you start over at 30 years again.

gmakerley · Posted: Tue Nov 10, 2009 11:07 am Post subject:

lynn, refinancing doesn't require you to begin again with a 30 year loan. there are 10, 15, 20 and 25 year terms - if they fit your monthly budget. rates improve with the shorter periods, also.

what you're doing right now is an excellent way to prepay your loan. you're saving interest every month, reducing your principal every month and saving quite a bit of future interest as well.

you may well be best-served to continue to do what you're doing now, and perhaps modify it a bit by adding additional principal payments each month, or even just every so often.

Guest

I have seen the same ad. I am still trying to figure out his angle other than selling books. So far it seems like an excel program set up for households to better help manage their finances. I can't figure out how anyone can borrow money for such a lenghth of time and not expect to pay intrest of any sort. That goes back to the old saying if sounds to good to be true it usuallly is.

Guest

I saw that guy on tv as well. If there is a such thing as an open end mortgage the banks won't tell you. I'm going to start asking different banks.

Guest

I saw the same program on TV also. How does a current FHA mortgage apply to an open ended mortgage? Can one of the experts reply?

Guest

A Mortgage wherein the borrower is allowed to re-borrow against the principal that has been paid so far is known as open end mortgage. I don't think that the current FHA mortgage applies to this.

Guest

• What if I did an open-end, would my original contract or language be affected? Like my property taxes and everything that was escrowed in the begging. I am a new home owner; I am not saying that I want to borrow any money. I just want to know if this would affect what I started in the beginning. For instance, my cousin them borrowed money, perhaps it was an open end case, or whatever, however, the regretted it because they said that they had to pay everything separate from how they had it in the begging.

Guest

WHAT HAPPENS WHEN THE HOMEOWNER DIE ON AN OPEN END MORTGAGE?

jameshogg · Posted: Thu Jun 09, 2011 10:23 pm Post subject:

Hi mary,

The lender will try to recover the mortgage debts from the deceased homeowner's estate. If the heirs of the deceased person refinances the mortgage, then they will have to pay off the mortgage debt on time.

Thanks

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Open end mortgage - What is it all about?

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