An interest rate cap is the maximum amount that a percentage rate of a loan can increase or decrease. Interest rate caps are used to calculate the rate of an Adjustable Rate Mortgage ARM loan at various points of the loan’s life.
An interest rate cap is the maximum amount that a percentage rate of a loan can increase or decrease. Interest rate caps are used to calculate the rate of an Adjustable Rate Mortgage ARM loan at various points of the loan’s life.
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