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n_raghu2007 · Joined: 08 Jan 2009 Posts: 1 1.26 Dollars($)

Hello I need to know the difference between Difference between Open-End Mortgage and Closed End Mortgage and the What is Reverse Mortgage, Could you please explain these in brief

jerry · Posted: Fri Jan 09, 2009 2:47 am Post subject:

Hi n_raghu,

A mortgage in which the mortgagor is allowed to re-borrow against principal that has been paid so far is known as open-end mortgage. A mortgage for which repayment cannot be made prior to maturity is known as closed mortgage. In this case, re-pledging of the same collateral requires the bondholder's/lender’s permission.

Reverse mortgage, on the other hand, is a home loan which provides you with steady flow of tax-free income, either in a lump sum or installments. As it provides easy flow of cash, so lot of seniors prefer this. Recently, a new law has come up which allows the seniors to buy their primary residence with a reverse mortgage. To know more about reverse mortgage, check out the given link:
http://www.mortgagefit.com/reverse.html

Thanks,

Jerry

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