Mortgages
Mortgage Caps
When an adjustable rate mortgage actually does adjust, caps are the limits set by the federal government for that adjustment. A lender cannot just adjust that mortgage to any number it wants but that change must stay under those caps. Caps also affect the monthly payment you may be required to meet as there are legal limits on those as well.
It might seem strange that there would be caps as set out by the federal government but it's important to ... Read More »