1. A property loan that can be settled before the maturity date without the payment of a penalty. To compensate for this provision, interest rates on open mortgages are usually higher. 2. A mortgage that has not been paid off and has now matured or is open to foreclosure.
Link to This DefinitionDid you find this definition of OPEN MORTGAGE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary