Arizona real estate listings, Homes, land and properties for sale in Phoenix, Glendale, Peoria, Surprise, Goodyear, and West Valley real estate, Cynthia Robertson

Cynthia Robertson

The Robertson Team
Century 21 Northwest

Office: 623.266.3560
Cell: 602.448.9281

Serving the Greater Metro Phoenix area.

Arizona real estate listings, Homes, land and properties for sale in Phoenix, Glendale, Peoria, Surprise, Goodyear, and West Valley real estate, Cynthia Robertson

Capped Rates

How it works

Your payments are variable and often linked to a base rate, but fixed not to go above a set level (the 'ceiling' or 'cap') during the period of the deal. At the end of the period, you are usually charged the lender's standard variable rate.

Early repayment charge?

During the special deal period -Yes, with most loans

For some time after the end of the special deal - Yes, with some loans.

Is it for you?

Yes, if you like to know the maximum you will pay over a set period.

Yes, if you think mortgage interest rates might rise above the cap.

Yes, if you want the security of knowing that your payments can't rise above the set level, but still have the chance of benefiting from any falls in interest rates.

No, if you can find a fixed rate set at a lower rate than the cap and you think rates are unlikely to fall below the level of the fixed rate deal.

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Capped Rates - Mortgage Information

Capped Rates