 Sam
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Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
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 Posted: Thu Apr 01, 2004 4:15 am Post subject: Closed Mortgage |
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Closed Mortgage is a type of mortgage with a fixed term and which cannot be prepaid, renegotiated or refinanced before the expiry of the term. These mortgages are not flexible and there is usually a penalty in prepaying/repaying the full amount if the lender agrees. It usually offers the lowest interest rate available. Closed mortgages have terms ranging from six months to twenty years with a five year term being the most common.
It's a good choice if you will make regular monthly payments and possibly limited prepayments. This helps you to work out your budget for few years. It may not be a good choice if you are planning to move before the end of the term. |
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