Implied Call


DEFINITION of 'Implied Call'

A right given to mortgage borrowers that allows them to call or pay-back a loan at any time. The call is implied, as it is included in most mortgages unless specified otherwise.

BREAKING DOWN 'Implied Call'

The implied call allows a borrower to refinance a mortgage when interest rates drop. In this case, the borrower will take out a new mortgage at the lower rate, using its proceeds to call the original debt.

  1. Mortgage

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  2. Call Provision

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  3. Refinance

    1. When a business or person revises a payment schedule for repaying ...
  4. Refinancing Risk

    1. The risk that an early unscheduled repayment of principal ...
  5. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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