open-variable and pre-approved mortgage

Hi pankul,

Open variable rate mortgage is a home loan which is offered at an interest rate that varies with money market conditions. You can prepay or renegotiate with the lender to pay down the loan any time without having to pay extra interest amount.

Pre-approved mortgage is a home loan set at a certain rate of interest prior to purchasing your home.

Thanks,
Jerry.

Thanks Jerry for your answer

One more think i would like to ask if you permit me. Is the variable rate convertible to any fixed rate later on. Will there be any penalty if i do so.
Thanks

variable rate can be converted to fixed rate. There can be penalty depending upon the lender.

"Is the variable rate convertible to any fixed rate later on. Will there be any penalty if i do so."
Prepayment penalty exists on mortgages if it is paid off before a certain period of time has elapsed.

You should contact your lender to know if prepayment penalty exists for your mortgage or not and if it does then for how many years.