Posted by Andy_WA on 9/9/04 3:37pm
Msg #7611

Need Help

Could someone please tell me what an "Open-End DOT" is?...TIA

Reply by Bob-Chicago on 9/9/04 4:48pm
Msg #7614

Generally it means that the obligation secured is not a a definate amount.
Example would be certain variable interest loans do not rquire full payment of increased amount of interest until a later date, In other words, even if the interst rate goes up, the payment stays the same. The additional interest accrues and is paid at a later date, or when the final payment is due. Some people call these "forecloseure bait" for obvious reasons.

Reply by Andy_WA on 9/9/04 6:37pm
Msg #7623

Re: Thanks Bob

Reply by sue on 9/9/04 10:04pm
Msg #7639

an open end mortgage (or deed of trust) is a line of credit - you can borrow up to whatever the preset amount is. many you repay only interest during the draw period and then you've got 20 or 30 years to pay back whatever amount you owe at the end of the draw. most times these are adjustable interest rates.

Reply by Jan Kohake on 9/10/04 11:06am
Msg #7658

The only time I've seen the "open end" DOT is on a HELOC. I do many of these.