Closed-End Credit
A loan or extension of credit in which the proceeds are dispersed in full when the loan closes and must be repaid, including any interest and finance charges, by a specified date. The loan may require periodic principal and interest payments, or may require the entire payment of principal at maturity. Investopedia Says:
In this type of loan or credit arrangement, the full amount owed must be paid back by the borrower by a set point in time. Most real estate and auto loans are closed-end credit, while credit cards and home-equity lines of credit are open-end or revolving lines of credit. Related Terms:
Amortization
Amortization Schedule
Compound Interest
Credit Card
Line Of Credit - LOC
Mortgage
Open-End Credit
Principal
Revolving Credit
Simple Interest Bi-Weekly Mortgage |