====== Open-End Mortgage ======

An **open-end mortgage** is a mortgage that allows the borrower to **borrow additional funds in the future** under the same mortgage, up to a specified limit.

===== Key Characteristics =====
  * Secures **future advances**
  * Maximum loan amount is stated in advance
  * Priority dates back to the **original recording**
  * Common for **[[home equity lines of credit]] (HELOCs)**

===== How It Works =====
  * Initial loan is recorded
  * Borrower may take additional advances later
  * No need to record a new mortgage for each advance
  * All advances are secured by the same property

===== Open-End vs Closed-End Mortgage =====
  * **Open-End Mortgage**
    * Allows future borrowing
    * Balance may increase

  * **Closed-End Mortgage**
    * Fixed loan amount
    * No additional borrowing allowed

===== Priority =====
  * Advances generally retain the **original lien priority**
  * Later liens are subordinate up to the stated maximum

===== Exam Tip =====
  * Think **HELOC**
  * Open-end mortgages secure **future advances**
  * Priority relates back to the **original recording date**