Value Mortgage is essentially a mortgage product that has been stripped off features and benefits that could be very useful, but many borrowers do not utilize. In return for sacrificing these product features, the borrower gets pricing that is even better than the discounted rate. So basically, you give up some benefits you probably will not use, and get what is really important to you. The best possible rate! So what are examples of product benefits that you sacrifice? First, let's talk about the lump sum prepayment privilege. A typical mortgage product will allow the borrower to pay down 15-20% of the original principal annually. This is a great way to save interest costs in the long run, IF you could afford to. Unfortunately many borrowers do not have the extra cash to take advantage of this feature. With Value mortgage, you can't. But you will receive a better interest rate on your loan, which may be the most important thing for you. Another option that is not available for this product is a range of terms (anywhere from 6 months to 10 years; variable or fixed). With Value mortgage, you get only one choice: 5-year fixed rate term. Ultimately you have to decide what is right for you.