Close: typically fix 5 year term. Penalty may apply when you terminate before the end of the term. 6 S4 a; E& Y/ N 7 `7 ~0 m# d6 x% L6 f. _' A+ V7 i& aOpen: typically up to 5 year term. No penaly and no restrication when you choose to terminate the mortgage. So the rate is typically higher.