Readvanceable

A readvanceable mortgage is a type of mortgage loan that allows the borrower to access additional funds, or "readvance," as needed. This can be a useful option for borrowers who are planning to make renovations or other improvements to their home and need access to additional financing.

A readvanceable mortgage works by combining a traditional mortgage loan with a line of credit. The borrower can access the line of credit as needed, up to a certain limit, and pay it back over time. The interest rate on the line of credit is typically variable, and the borrower is only charged interest on the amount they borrow.

Readvanceable mortgages can be a good option for borrowers who want the flexibility to access additional funds as needed, but they may be more expensive than traditional mortgages due to the added complexity and the variable interest rate on the line of credit.