A closed-end mortgage is a type of mortgage loan whose principal amount cannot be increased during the payout period. This contrasts with an open-end mortgage, where the loan amount can be revised or increased.
Face amount refers to the nominal value or dollar value of a security stated by the issuer. For bonds, it is the principal amount paid back to the bondholder at maturity. For insurance policies, it represents the amount payable to the beneficiary upon the death of the insured.
