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Mortgage Knowledge Base Mortgage Types Capped Rate Mortgage

Capped Rate Mortgage

Capped Rate Mortgage refers to that mortgage type, which enables the borrower to know how much repayments he/she will be making during the initial rate period. It offers a kind of security or cap to the mortgage against the rising interest rates. This repayment scheme imposes repayment penalty on the borrowers when they want to switch off from it.

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