What is the difference between an open-ended and a closed-end mortgage?

In Virginia, an open-end mortgage and a closed-end mortgage differ in several ways. An open-end mortgage gives the borrower the option of taking additional loans at any time while the mortgage is active. This type of loan is often referred to as a home-equity line of credit or HELOC. With an open-end mortgage, the amount of money borrowed can be increased or decreased without requiring any new paperwork. A closed-end mortgage, on the other hand, does not provide a borrower with the option of taking out additional loans. With a closed-end mortgage, the borrower is given a fixed amount of money that must be repaid in full over a set period of time. This type of mortgage does not allow the borrower to increase or decrease the amount of money borrowed. The main difference between open-end and closed-end mortgages is the flexibility of borrowing. An open-end mortgage can offer more flexibility, as it allows the borrower to take out additional loans as needed, while a closed-end mortgage requires the borrower to repay the loan in full within a set period of time.

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What is the difference between an open-ended and a closed-end mortgage?

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