Closed Mortgage: may best be defined as a conventional mortgage agreement in which the interest rate is fixed for a term and cannot be prepaid, renegotiated or refinanced before maturity, except upon payment of a pre-payment penalty . Be advised that some lenders may agree to limited pre-payment privileges .
: may best be defined as a mortgage that allows the borrower to pay off, renew or refinance as much of the balance owing as desired, without penalty, at any time.
: may best be defined as a mortgage for which the rate of interest is set at a particular level for a certain term, ranging from six months to five years or more.
Variable Rate Mortgage
: may best be defined as a mortgage for which the rate of interest fluctuates. Payments on a variable-rate mortgage generally do not rise and fall. If interest rates go down, more of the monthly payment goes to pay off the principal ; if rates go up, more money goes towards paying the interest charges.
Cash Back Mortgage
: may best be defined as a mortgage that assumes the posted five-year mortgage rate. In exchange for taking the non-discounted rate, the financial institution gives the borrower a cash rebate.
Home Owner Line of Credit
: the use the equity you have in your home to obtain the lowest possible rate of interest on a variable rate line of credit.