open end mortgage definition
What Is an Open-End Mortgage. Earnings per share EPS.
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An open-end mortgage is a type of mortgage that allows the borrower to increase the amount of the mortgage principal outstanding at a later time.
. For example lets say borrower takes out a loan for 100000 that the lender secures with a mortgage and borrower draws down 10000 in principal under the loan at closing. An open-end mortgage allows individuals to borrow additional money on the same loan at a later date without having to take out new financing or credit. An open-end mortgage is a type of mortgage that allows the borrower to increase the amount of the mortgage principal outstanding at a later time.
Permitting additional debt to be incurred under the original indenture subject to specified conditions. A General rule--Whether or not it secures any other debt or obligation an open-end mortgage other than a purchase money mortgage as defined in section 8141 relating to time from which liens have priority may secure unpaid balances of advances made after such open-end mortgage is left for record. 0 0 Related Articles Real Estate Website Brownstone Zoning Zone Writ of Execution Wrap Around Mortgage Next Page.
Open-end mortgage in American English noun a mortgage agreement against which new sums of money may be borrowed under certain conditions Most material 2005 1997 1991 by Penguin Random House LLC. Modified entries 2019 by Penguin Random House LLC and HarperCollins Publishers Ltd You may also like English Quiz Confusables Language. An open-end mortgage is a mortgage with that allows the mortgagor to borrow additional money in the future without refinancing the loan or paying additional finance charges.
With an open-end mortgage the lender may loan the additional 90000 in principal and. What Is an Open-End Mortgage. If the amount of additional bonds is restricted the mortgage is referred to as a limited open-end mortgage.
It blends some features of a traditional mortgage with some advantages of a home equity line of credit or HELOC. Open-end mortgages combine the benefits of a traditional mortgage and a HELOC. Open-End Mortgage A mortgage that allows the borrowing of additional sums often on the condition that a stated ratio of collateral value to the debt be maintained.
Having a fluctuating capitalization of shares that are issued or redeemed at the current net asset value or at a figure in fixed ratio to this. Mortgage against which additional debts may be issued. The definition of an open-end mortgage underlines the fact that the mortgage or trust deed can be increased by the mortgagee borrower.
Open-end provisions often limit such borrowing to no more than the original loan amount. Open End Mortgage A mortgage containing a clause which permits the mortgagor to borrow additional money up to the original amount of the loan after the loan has been reduced without rewriting the mortgage. An Open-end Mortgage is a distinct sort of house loan in which the client can utilize the loan money as required even when theyve bought the property.
An open-end mortgage acts as a lien on the property described in the mortgage. A mortgage that provides for future advances on the mortgage and which so increases the amount of the mortgage. Open-end mortgage saves borrower the effort of going somewhere else in search of a loan.
Generally an open-end mortgage is one that remains open after it has been delivered to the county recorder and it permits the lendermortgagee to make advances on the loan that are secured by the original mortgage but only to the extent the total indebtedness does not exceed the maximum principal amount identified. It remains open and it permits the lender to make advances on the loan that are secured by the original mortgage. The mortgagee may secure additional money from the mortgagor lender through an agreement which typically stipulates a maximum amount that can be borrowed.
A conveyance of title to property that is given to secure an obligation as a debt and that is defeated upon payment or performance according to stipulated terms shows that a deed was intended only as a mortgage W. An A to Z Guide to Investment Terms for Todays Investor by David L. Open-End Mortgage Definition.
An Open-End Mortgage is an expandable loan that allows a borrower to access home equity appreciation for additional funds at a later date. Wests Encyclopedia of American Law edition 2. An open-end mortgage is a type of home loan in which the total amount of the loan is not advanced all at once but rather used for future home-related improvements as needed.
It is a type of rotating credit wherein the borrower is entitled to get top up on the same loan subject to a prescribed ceiling. It provides the borrower with just enough money to purchase a property just like a standard new mortgage. Open-End Mortgages Law and Legal Definition.
Legal Definition of mortgage Entry 1 of 2 1 a. Open-end mortgage A mortgage that permits the issuer to sell additional bonds under the same lien. Adjective organized to allow for contingencies.
A If an open-end mortgage meets the requirements of this section such mortgage shall be deemed to give sufficient notice of the nature of the obligation to secure the obligation of any person who is secondarily liable for an open-end loan including 1 a commercial future advance loan as defined in subsection c of 49-2 without regard to whether the authorized amount. Section 10032 i defines a home improvement loan as a closed-end mortgage loan or an open-end line of credit that is for the purpose in whole or in part of repairing rehabilitating remodeling or improving a dwelling or the real property on which the dwelling is located.
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