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A readvanceable mortgage has a built-in line of credit that lets you re-borrow off the line of credit after you pay down the mortgage portion.
Readvanceable mortgages provide homeowners with a low cost source of borrowing for renovations, investing, business use and emergencies, among other things.
Depending on the lender, the line of credit limit can be increased automatically as the mortgage principal is paid down, or increased manually (which requires lender approval). Manual readvanceables are far less flexible and convenient.
Synonyms:
Auto-readvanceables, Auto-readvanceable
