A readvanceable mortgage has two segments:
As you pay down the mortgage portion, the lender increases the available credit in your line of credit by the same amount. That lets you “readvance” (re-borrow) the funds later, if needed.
Suppose, for example, that you paid off $1,000 of principal on your mortgage. With a readvanceable mortgage, the lender would let you borrow that $1,000 from your attached line of credit.
Examples of readvanceable mortgages include:
The most convenient readvanceable mortgages are those that automatically readvance credit, as opposed to some which make you re-apply each time you want an advance.
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