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Sebanti Ghosh's Articles in Mortgages

  • Caps In Adjustable Rate Mortgages – Limitations On Payable Amount
    Caps are applied in adjustable Rate Mortgages to limit the risk that a borrower may have to face in case the amount to be paid every month shoots up with time. Thus, caps are protections against any rise in interest rates prone to happen if the indices to which the rates are tied suddenly increase. The cap must be specified in the loan agreement.

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