Close: typically fix 5 year term. Penalty may apply when you terminate before the end of the term. ' ~) a: v8 ^6 u0 l/ w b- I7 I( u, {1 R% j, s+ _. B" Y9 GOpen: typically up to 5 year term. No penaly and no restrication when you choose to terminate the mortgage. So the rate is typically higher.