Closed-End Mortgage

Mortgage-bond issue with an indenture that prohibits repayment before maturity and the repledging of the same collateral without the permission of the bondholders; also called closed mortgage. It is distinguished from an Open-End Mortgage which is reduced by amortization and can be increased to its original amount and secured by the original mortgage.

A mortgage loan whose principal amount cannot be increased during the payout period; contrast with Open-End Mortgage.
Example: Most first mortgages on homes provide the full balance at origination of the loan. No additional debts are allowed under the mortgage because it is a closed-end mortgage.