This confusion may be due in part to the fact that open mortgages tend to be not as common, and so you may not have realized it was even an option for your home purchase. And, even if you know the difference it can be hard to know exactly when you should use each. Opting for one, when you should have chosen the other can ultimately result in thousands of dollars of overspending, while smartly using the right option can save money.
Luckily the difference between open and closed mortgages is simple enough to explain. The matter of which one is right for you may be a bit harder to address, but we will help make the decisions a bit smoother by offering some ideas to consider.