When an in-house mortgage is originated, the mortgage normally contains a future advance clause. In the past, this future advance clause has been used to secure loans with the real property without incurring additional closing costs to customer (i.e., updated title opinion, mortgage prep, etc). Does anyone else secure loans by the future advance clause? Have you experienced any problems with this? Thanks for sharing.

We have had no problem using the future advance clause. Just make sure the ROR is given for any future advances.

And the maturity of the new loan can't exceed the maturity of the mortgage.

Be sure to check your state's law - some states have different rules for future advances.