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

    A debt instrument, secured by the collateral of specified real ...
  2. Call Provision

    A provision on a bond or other fixed-income instrument that allows ...
  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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  1. Are secured personal loans better than unsecured loans?

    Secured loans are better for the borrower than unsecured loans because the loan terms are more agreeable. Often, the interest ... Read Full Answer >>
  2. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  3. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  4. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  5. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
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