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Glossary - Don Wixom, Nampa, Caldwell, Boise, Eagle, Meridian

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Rate CapsLenders 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.

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. 

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