Lenders offer caps with their adjustable rate mortgages (ARMs) so you can have more control over your monthly mortgage payment. Usually, there are two types of rate caps:
-- A per-adjustment cap, which specifies the most your interest rate can rise from one adjustment period to the next,
-- and a lifetime adjustment cap, which specifies how much your interest rate can rise over the life of your loan.
Ask your lender about both caps when evaluating any ARM product.
[ Back To Real Estate Glossary ]
All Rights Reserved Edward Black
TeamBlackBerry LLC t/a
TeamBlackBerry & Associates SM
REAL ESTATE TEAMS,LLC
50 Citizens Way Frederick, Maryland 21701
Lake Linganore, Maryland
Ed Black, Specializing in Frederick County MD real estate! - Frederick MD Realtors - Frederick MD Homes - HUD Home Sales - www.edsellsmaryland.com - www.lakelinganorehomesales.com - www.teamblackberry.com
Real Estate Websites by iHOUSEweb, Inc. ®