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

sweeney's picture
sweeney | Joined: July 20, 2008 12:50 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Mon, 07/28/2008 - 17:55 | Post subject:

chrisburns's picture
chrisburns | Joined: November 13, 2007 07:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Mon, 07/28/2008 - 18:00 | Post subject:

enriko's picture
enriko | Joined: March 5, 2008 04:00 am | Posts: 0 | Location: New Jersey | 00 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

Like | Dislike | Share | Posted: Tue, 07/29/2008 - 03:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Tue, 11/11/2008 - 02:49 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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...

Like | Dislike | Share | Posted: Tue, 11/11/2008 - 10:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Sat, 12/13/2008 - 15:57 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] 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.

Like | Dislike | Share | Posted: Mon, 12/15/2008 - 01:33 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Mon, 12/15/2008 - 07:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Sun, 02/15/2009 - 12:18 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Mon, 02/16/2009 - 00:11 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Sun, 02/22/2009 - 04:02 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Mon, 02/23/2009 - 02:15 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Mon, 02/23/2009 - 06:35 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/27/2009 - 16:46 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what you describe is not an open-end mortgage.

when i write my book, i will go on tv and lie about it, too.

Like | Dislike | Share | Posted: Sat, 02/28/2009 - 04:43 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yeah....I heard that same guy, which is why I'm here. As I understood the concept: There is a mortgage "account", with fixed-rate interest. The "owner" has a checkbook, and can pay bills off the acct. My pay check goes into the acct, and I use the principal as a loan if needed. I think the theory of paying down more quickly is that, with a pay check being deposited regularly, the interest paid is based on an increasingly smaller amount. Does that make sense? But I haven't found any bank that has this "product".

Like | Dislike | Share | Posted: Sun, 03/01/2009 - 14:52 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't think it makes sense and thus you are unable to find a bank which offers such a "product".

Like | Dislike | Share | Posted: Mon, 03/02/2009 - 00:47 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

there are no banks offering that product. it is something that has received a lot of publicity in the last couple of years. whether it's been proven to be pure folly or something that works well is an answer i don't have.

i have to tell you that i am very much a skeptic about it, though.

Like | Dislike | Share | Posted: Mon, 03/02/2009 - 08:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The way this idea seems to work is that money is saved by depositing most of one's income into the mortgage account. The money is applied as principle thereby reducing interest accrual. Also the borrower should save on loan fees that result from not being able to access their equity in a close ended mortgage without taking out additional loans. ie an home equity line of credit. (responses welcome)

Like | Dislike | Share | Posted: Fri, 03/13/2009 - 20:08 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It can be simply defined as a mortgage in which the borrower is allowed to re-borrow against principal that has been paid so far.

Like | Dislike | Share | Posted: Fri, 03/13/2009 - 22:23 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i'm still not convinced that it's a workable solution to anyone's problems.

Like | Dislike | Share | Posted: Sat, 03/14/2009 - 04:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I saw the same guy trying to sell the book. I am looking for his name, in order to buy the book. GOT IT?

Like | Dislike | Share | Posted: Tue, 03/17/2009 - 07:37 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It will be better if you could name the book.

Like | Dislike | Share | Posted: Tue, 03/17/2009 - 23:47 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can get the book by calling 1-800-958-8046

I saw the same infomercial and they also specifically said not to [url=http://www.mortgagefit.com/refinance.html]refinance[/url].
So how do you convert the loan??

Like | Dislike | Share | Posted: Thu, 03/26/2009 - 11:00 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you have an open end mortgage and if you want to refinance it, you should speak to your lender or other lenders of your area. This will help you know whether you would be able to refinance it or not.

Like | Dislike | Share | Posted: Fri, 03/27/2009 - 03:16 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

The book is called "Mortgage Free for life: secrets banks and lenders don't want you to know". The infomercial I saw had this number to call: 1-800-708-8967

Like | Dislike | Share | Posted: Sat, 06/20/2009 - 04:01 | Post subject:

haridas_badhe's picture
haridas_badhe | Joined: May 11, 2009 06:44 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

WelCome..!!

Open end mortgage :
Mortgage under which the mortgagor (borrower) may secure additional funds from the mortgagee (lender), usually stipulating a ceiling amount that can be borrowed.
Mainly two Mortages One is closed mortage second is Open ended mortage.
In Closed mortage,no more indebtedness can be incurred.And In Open Ended, the amount authorized under the terms of the mortgage has not been reached.
Most conventional mortgages are packaged into pass-through mortgage-backed securities.

Thanks
Hari
Conventional Mortgage :In which the underlying terms and conditions meet the funding criteria means market condition.

Like | Dislike | Share | Posted: Mon, 06/22/2009 - 09:27 | Post subject:

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