MORTGAGE DICTIONARY

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OBLIGEE:
The lender in a loan transaction -- the person to whom, as a result of her actions, another person owes an obligation. See also "mortgagee" or "chargee".

OBLIGOR:
The borrower in a loan transaction -- the person who owes an obligation to another.

OPEN END MORTGAGE:
A loan which is specifically drafted to allow the borrower to borrow further funds at a later date without requiring the preparation and registration of new mortgage documentation.

OPEN MORTGAGE:
A mortgage which may be prepaid in full or in part at any time during that life of the mortgage without notice, bonus or penalty.

OPTION RISK:
The downside of giving a borrower an option, such as the possibility that she may prepay an open mortgage and reduce the income generated to the lender by the accumulation of interest over the life of the mortgage.

ORIGINAL EQUITY:
The owner's original downpayment on a property.

ORIGINAL FACE VALUE:
The principal amount owed on a mortgage on the date of its negotiation as shown on the "face" of the agreement.

ORIGINAL PRINCIPAL BALANCE:
See "original face value".

ORIGINATION FEE:
See "commitment fee".

OUTSTANDING BALANCE:
The amount of money (including principal and interest) owing at a given date on a loan or mortgage.

OWNER FINANCING:
See "mortgage back" or "vendor take-back mortgage".