mortgage

Hello sheoduttparvat,

Welcome to the forum. A good link to get an idea about types of mortgages can be found in the GUIDE link above.

Below I pasted a link of the those different types of mortgages and explains what you are looking for.

http://www.mortgagefit.com/frm.html

Hope the information I provided you helps out.

Thanks!!

Hello,

Below is a link to what is amortization.

http://www.mortgagefit.com/mortgage-amortization.html

Thanks,

From what I researched, Open Ended Mortgages are as follows:

"Some lending institutions initiate "on demand" mortgage contracts, which read as though the entire amount of the loan is due upon demand. If no other arrangements are made between the customer and the lending institution, consider these as open-ended mortgages as described above."
Source: manuals.chfs.ky.gov

Hope this helps.

Thanks

[Edited by Jessica as per forum guidelines]

Hi Sheoduttparvat,

Welcome to forums.

Balloon mortgage is a short term fixed rate loan program on which you pay monthly installments for a period of 5 to 7 years. The monthly installments are based on what one can pay for a 30 year fixed rate loan on a monthly basis.

The remaining debt has to be paid at the end of the 5 or 7 year period. But you can also pay off the unpaid debt by refinancing or replacing the existing loan with a new home loan.

Thanks,
James.

hi sheoduttparvat,

an open-end mortgage is a home having a provision that one can borrow additional sum in future. for this, he does not have to refinance or pay extra charges. but in most cases, the borrower cannot take out an additional sum exceeding the original loan amount.

usually there is a special clause in the loan contract that allows for additional borrowing. for example, the home equity line of credit is a kind of open end mortgage because one can borrow a certain sum limited to a defined credit limit, repay it and borrow again within the defined limit.

thanks.