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Equity Lines of Credit aka HELOC have different ways of structuring the Cap than a typical First Lien family home lending corporation 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 ( the two most common periods on the market), then it takes anywhere from 2-4 maxiumum upward adjustments to reach this cap Negative family home lending corporation ARM caps See the complete article for the type of ARM that NegAM loans are by nature. Most of them are Monthly Adjustable ARMs and the life cap or ceiling 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 have to ask . . . . The fully indexed rate family home lending corporation always listed on the statement, but borrowers are shielded from the full effect of
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