Open or Closed Mortgage

Hi Roy,
It's a pure guess.  If you take the a close mortgage you pay a bit more but you know exactly how much will you pay at the end (or PV).  You simply pay a relatively small "insurance" fee..... 
If you take the open one you "gamble"....  you can save or loose all depends on the prime.  My guess is that the prime will go soon up and in an unprecedented rate.  I predect a shortage of cash in the markets (already started).  That's my guess. I might be wrong.  If you want to sleep well at night, take the 5%. 
Best regards,

the rates are low now so i would take advantage of the fixed rate. however, the rates could continue to drop and u could be missing out. like mr orond said, the open one is like gambling, and in most cases of gambling, you either come out equal or down. my advice is to have a mortgage payoff program that helps you pay it off sooner, saving you money in the long run. theres a number of programs out there but one example is the money merge account, which helps you to payoff your huge mortgage in almost less than half the normal time. best of luck to ya...

Take the fixed, it is a fair rate. If they continue to go down through the yrs. u may re-fi maybe even with your lender.The big problem with the morg. bust was adjustable rates and no ability to get a lower rate they stopped lending and pulled the rug out under them. Now when the fed is lowering rates I don't see that passed on to the buyers. They get bailed out and the people live in a tent. Go with the fixed.