Capped Rate Mortgages

Colocation · Site Admin Joined: Jan 07, 2004 Posts: 412

Anyone taken one of these out?

I'd be interested to hear more.

lilies34 · Newbie Joined: Jan 07, 2008 Posts: 3

i haven't taken one but from what i heard Capped-Rate Mortgage offers a low short-term rate along with long-term security.

The applicable interest rate is variable and adjusted each month according the prime rate. However, if rates are up at the time of the next adjustment, you never pay more than your initial capped rate. Your capped-rate (maximal rate) is determined according the 5-year term at the signature. You always benefit from the best rate: the prime rate or the capped rate. You can count on both security and significant savings.

Benefit form a fixed payment based on the rate for the 5-year term in effect when the loan is opened. With this payment option, you keep the same payment even if an interest rate raise happens.

hope that helped!

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