An open-ended mortgage basically means that you can request an increase in a loan amount from a lender. This type of loan is for people who might need more flexibility than usual. For example, if they are buying land and then plan to build later, or in a situation where they believe it’s possible they will have to finance more at some point.
The big advantage of an open-ended loan is that a borrower can request additional funds without having to go through the loan process again. This means considerable savings on fees, closing costs, etc. However, there are strict limitations. An open-ended mortgage is basically like a home equity loan. [...]
No matter how many times you’ve purchased a home, the escrow process can still be a source of confusion. If you’re buying your first home, this is doubly so. So what exactly is escrow and how does it work?
There’s a lot at stake during a real estate transaction and there’s plenty of room for error. That’s where escrow agents come in. You can think of an escrow agent as an impartial third party who takes possession of important documents and funds for safe keeping while the closing process is in progress. After you have closed on your house the money that you pay to your escrow each month will go towards your property taxes and [...]