Posted on: 07th Feb, 2010 11:08 am
Please explain the following terms:
Fixed open, fixed close ,variable open,Variable close
Fixed open, fixed close ,variable open,Variable close
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
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
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.