OPEN END MORTGAGE

purplesalsa · Joined: 28 Jul 2008 Posts: 1 1.55 Dollars($)

Can anyone tell me what an open end mortgage is? What is the difference between that and a conventional mortgage.

sweeney · Posted: Mon Jul 28, 2008 5:55 pm Post subject:

Hello-
An open usually refers to a Home Equity Line of Credit (or HELOC). This a 2nd lien against your property. It's called open end because there is no set term for the payoff of the principal balance. You can pay the interest only and have the principal balance remain the same for an indefinite period of time.

chrisburns · Posted: Mon Jul 28, 2008 6:00 pm Post subject:

An open ended mortgage is a revolving line of credit or equity line against your home.

A mortgage is an amortized fixed amount of money that cannot be borrowed against further.

enriko · Joined: 05 Mar 2008 Posts: 67 17.43 Dollars($)

Hi,
I googled it and that is what it cam up with.
I hope that helps you.

mortgage in which the mortgagor is allowed to reborrow against princpal that has been paid so far.

God bless

Guest 0.10 Dollars($)

how does on use an open end mortgage work enable a borrower to payoff a homeloanfaster?

gmakerley · Posted: Tue Nov 11, 2008 11:53 am Post subject:

the original open-end mortgages were exactly what enriko noted above. for instance, with an original amount of $100,000 paid down to $90,000; the borrower would have been allowed to borrow the $10K paid without affecting the terms of the mortgage; there was not a second lien created, as the original terms of the original note held forth.

this is well before the days of the home equity line of credit, i have to tell you all. oh, the memories...

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