| than a typical First Lien Mortgage. First Lien Caps with no Negative amortization Most First Mortgage loans have a 5% or 6% Life Cap. If the adjustment period is 6 months or 1 year ( foreign money exchange rate two most common periods on the market), then it takes anywhere from 2-4 maxiumum upward adjustments to reach this cap Negative amortization ARM caps See the complete article for the type of ARM that foreign money exchange rate loans are by nature. Most of them are Monthly Adjustable ARMs and the life cap or foreign money exchange rate is simply expressed as a maximum rate, usually 9.95% or 10.95% these days. Beware though, some of these loans have 14-16% ceilings, you |
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