mortgage terms

kcchan82 · Joined: 07 Feb 2010 Posts: 1 1.26 Dollars($)

Please explain the following terms:

Fixed open, fixed close ,variable open,Variable close

adonis · Posted: Sun Feb 07, 2010 8:41 pm Post subject:

Hi kcchan,

As far as I know, an open mortgage means any amount which can be paid off anytime without penalty. On the other hand, fixed means the rate doesn't change during the loan term. Also, closed means there is a penalty if you pay off the entire loan amount early. However, lump sum prepayments can be made without any extra charge.

For variable open, check out the given page:
http://www.mortgagefit.com/know-how/about6640.html

riseabove · Joined: 09 Nov 2009 Posts: 214 1.30 Dollars($)

fixed and variable genrally refer to interest rates, and whether they are fixed at a particular rate for a specific time or can change daily. Open and closed I'm not sure of.

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