Close: typically fix 5 year term. Penalty may apply when you terminate before the end of the term. 1 N4 ~. T1 w- D: R$ c9 Z * |2 h. O# k4 ]! y6 h! S5 a% c4 cOpen: typically up to 5 year term. No penaly and no restrication when you choose to terminate the mortgage. So the rate is typically higher.