Are you trying to decide between an open or closed term mortgage? As a mortgage agent, I understand that choosing the right type of mortgage can be overwhelming. That’s why I’m here to help you understand the different options and find the best one for your unique needs.
Closed term mortgages have a fixed interest rate and a set term, usually between one to ten years. During the term, your monthly payments remain the same, and there are limitations on how much extra you can pay down the principal. However, the benefit of a closed term mortgage is that you typically get a lower interest rate.
On the other hand, open term mortgages have a fluctuating interest rate and no set term, which means you can pay off your mortgage in full or make extra payments without penalty. However, open term mortgages usually come with a higher interest rate.
When deciding between an open or closed term mortgage, it’s important to consider your personal circumstances and financial goals. If you want to pay off your mortgage faster and have the flexibility to make extra payments, an open term mortgage may be the right choice for you. However, if you want a lower interest rate and prefer the predictability of fixed monthly payments, a closed term mortgage may be a better fit.
As your mortgage agent, I can help you understand the pros and cons of each option and guide you through the decision-making process. I have access to a wide range of mortgage products and can help you find the best one for your unique needs. Contact me today to learn more about open and closed term mortgages and find the right one for you.