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Real Estate Glossary

Cap

inflation calculator
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Written by Luis Escobar

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.

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Luis Escobar

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