Open end mortgage - What is it all about?

purplesalsa · Joined: 28 Jul 2008 Posts: 1 2.43 Dollars($)

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

sweeney

Hello-

An open end mortgage 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: Open end mortgage

An open end 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 0.07 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

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...

Guest

Is it possible to change a closed end mortgage into an open end mortgage?

Niicss · Posted: Mon Dec 15, 2008 2:33 am Post subject: RE: open end mortgage

Hi Liane

I haven't heard of converting a closed end mortgage to an open end one. Moreover, you should also note that the homeowner will require the permission of the mortgage holder to make use of the same collateral to secure a second mortgage in a closed end mortgage. So I think if you are planning to transfer a closed end mortgage to an open end one, better take the permission of the lender.

Thanks.

gmakerley · Posted: Mon Dec 15, 2008 8:28 am Post subject:

niiccs, i think you've read the wrong post. "changing" from closed-end to open end mortgage is impossible. refinancing, however, is quite possible, if a borrower is qualified.

Guest

Is it possiable to get a open end mortgage on a home in 2009 ?

Posted: Mon Feb 16, 2009 1:11 am Post subject:

I don't think you will get a open end mortgage considering the present market situation.

Guest

How do I go about geting a open end mortgage so I can pay off my mortgage faster? What steps do I need to take?

Posted: Mon Feb 23, 2009 3:15 am Post subject:

I don't think lenders will offer you a open end mortgage. However, you can try refinancing the mortgage at a lower rate so that your payments are reduced and you will also be able to save money.

gmakerley · Posted: Mon Feb 23, 2009 7:35 am Post subject: RE: open end mortgage

a true open end mortgage is one which allows you to pay your principal and reborrow later on. none of the first mortgage products out there are open-ended; they are closed-ended, meaning they are for a specific amount to be granted at one time.

a home equity line of credit is an example of an open-end loan. here, you borrow, repay, borrow again, repay, etc. for the duration of the life of the loan (if you wish).

i don't know where you got the idea, rudy, that you'd be able to pay back your balance faster with an open-end loan; but whoever may have given you that idea was incorrect.

Guest

There is guy on TV tring to sell his book, he mentioned about open end mortgage. Concept should work, if the open end mortgage available. He said we deposit the money on mortgage account instead of banks, you can take your money less payment when ever you need, just like banks.

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