Home Jones
Phone 415-617-5448
E-mail Me
HOME PAGE



Mortgage topics (sitemap)
Milwaukee Mortgage Blog
 Home Loan checklist!
Milwaukee Realtors!
Want a higher credit score?
Home Buyer Reports
About Me


What are caps on an ARM?

If you have an adjustable rate mortgage (ARM), or are considering one you have probably heard the term "caps" mentioned. The caps control how much your interest rate can change at each rate adjustment. The different types of caps are:
  • Initial Cap
  • Interim Cap
  • Lifetime Cap

Initial Caps are the limits placed on the first interest rate adjustment. On the mortgage agreement you signed at settlement, there is a paragraph that states the interest rate at the first adjustment date would not be greater and lower than a certain range.

Interim Caps are limits on how much your rate can go up each time it adjusts. For example your rate couldn't go up more than 1% each time after the initial adjustment.

Lifetime Caps are limits on home much your rate can go up over the life of the loan. This gives you an idea of your "worst case scenario".

 
 

First Name:

Last Name:

Email Address:

Phone Number:

 Location:

Best Time to Call:

Questions / Comments:

 

Please visit my other websites at
:
Milwaukee Mortgage Lender
Wisconsion Mortgage Refinance
Wisconsin Mortgage Lender
Milwaukee Real estate agent
Broker Outpost | Super Jumbo Refinance Loan | How to rebuild your credit after a bankruptcy
This is not a commitment to lend. Restrictions may apply. Information is subject to change without notice. All loans are subject to credit approval. Equal Housing Opportunity.
To View Our Privacy Policy Please Visit privacy policy.