What is the meaning of Closed Mortgage?

Closed Mortgage is a mortgage whose terms state that it cannot be paid out, even with a penalty, unless the lender agrees. In some cases, a closed mortgage may be discharged at a defined cost, usually Interest Rate Differential (IRD), but sometimes with a punitive penalty such as full interest to maturity.

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APABarry Goldsmith. (2010). closed mortgage. Retrieved September 22, 2026, from http://smartdefine.org/closed_mortgage/definitions/1150005
ChicagoBarry Goldsmith. 2010. "closed mortgage" http://smartdefine.org/closed_mortgage/definitions/1150005 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, closed mortgage, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/closed_mortgage/definitions/1150005>.
MLABarry Goldsmith. "closed mortgage" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/closed_mortgage/definitions/1150005>