Open-End Mortgage


Also found in: Financial, Encyclopedia.

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. A mortgage that provides for future advances on the mortgage and which so increases the amount of the mortgage.

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if an open-end mortgage is properly filed, the lender can safely advance future funds up to the maximum amount of the open-end mortgage.