Real Estate Glossary

Cap

inflation calculator
Written by Richard Wilson

This is the maximum acceptable increase for a specified amount of time on an adjustable-rate mortgage. Caps are a risk management tool that serves as protection against increasing interest rates, all the while maintaining the ability to engage in beneficial rate movement.

This is the maximum acceptable increase for a specified amount of time on an adjustable-rate mortgage. Caps are a risk management tool that serves as protection against increasing interest rates, all the while maintaining the ability to engage in beneficial rate movement.

About the author

Richard Wilson

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