Open vs. closed mortgages: what's the difference?

Open vs. closed mortgages: what's the difference?

When it comes to paying off your mortgage, you need to decide between two payment structures: an open-end and a closed-end mortgage. The one you choose will determine your flexibility and prepayment penalties.

The one you choose determines whether you can make increased or additional prepayments or pay off your mortgage early. However, there are financial penalties if you break the terms of your contract. 

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