Which would be the best mortgage option if you anticipate a windfall in the next year or two?
A)A one-year closed fixed-rate mortgage
B)A closed convertible five-year VRM
C)An open variable-rate mortgage
D)A closed two-year VRM

Question

Quizplus · Accepted Answer

An open mortgage allows the borrower to make prepayments without penalty. If the borrower anticipates a windfall in the near future, an open variable-rate mortgage would be the best option as it allows for flexibility in paying off the mortgage early. Additionally, a variable-rate mortgage may result in a lower interest rate compared to a fixed-rate mortgage, potentially saving the borrower money in the long run.

Which Would Be the Best Mortgage Option If You Anticipate