Closed-End Mortgage

Closed-End Mortgage
A restrictive type of mortgage that cannot be prepaid, renegotiated or refinanced without paying breakage costs to the lender. This type of mortgage makes sense for homebuyers who are not planning to move anytime soon and will accept a longer term commitment in exchange for a lower interest rate. Closed-end mortgages also prohibit pledging collateral that has already been pledged to another party.

Also known as a "closed mortgage".

A closed-end mortgage can have a fixed or variable interest rate and, along with open and convertible mortgages, is common in Canada. An open mortgage can be repaid early but will have a higher interest rate, while a convertible mortgage blends characteristics of closed and open mortgages.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Closed-end mortgage — Mortgage against which no additional debt may be issued. The New York Times Financial Glossary …   Financial and business terms

  • closed-end mortgage — mortgage against which no additional debt may be issued. Bloomberg Financial Dictionary …   Financial and business terms

  • closed-end mortgage — /ˌkləυzd end mɔ:gɪdʒ/ noun a mortgage where the borrower cannot use the property as security for other borrowings, such as a second mortgage, and cannot repay the mortgage early either …   Dictionary of banking and finance

  • Open-end mortgage — Mortgage against which additional debts may be issued. Related: closed end mortgage. The New York Times Financial Glossary …   Financial and business terms

  • open-end mortgage — mortgage against which additional debts may be issued. Related: closed end mortgage. Bloomberg Financial Dictionary …   Financial and business terms

  • Closed-end fund — A closed end fund (or closed ended fund) is a collective investment scheme with a limited number of shares. It is called a closed end fund (CEF) because new shares are rarely issued once the fund has launched, and because shares are not normally… …   Wikipedia

  • open-end mortgage — noun : a mortgage under which additional funds may be borrowed without making a new mortgage contrasted with closed mortgage * * * a mortgage agreement against which new sums of money may be borrowed under certain conditions …   Useful english dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

  • Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security …   Wikipedia

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