Close: typically fix 5 year term. Penalty may apply when you terminate before the end of the term. ' p, M; `! |6 ?7 N: Q3 b r2 r+ x * N% T# h5 x" Z" @9 T; v3 BOpen: typically up to 5 year term. No penaly and no restrication when you choose to terminate the mortgage. So the rate is typically higher.