| displayed and available. This is basic stuff, the ABC's of mortgage lending, if you're working with someone that can't or won't explain this to you, go elsewhere. What's better? - 1st 2nd mortgage refinancing lower these numbers are, the better for you, especially, the first number. Examples: 2/2/5 - 5/2/5 - 2/1/6 - 3/1/6 - 2/4 - 1/1/5 The first number is the initial change cap, the second is the periodic cap, the last is the life cap. When only two values are given, this always means the initial change cap and periodic 1st 2nd mortgage refinancing are the same. The longer the initial fixed period, typically, the higher the caps are given. “Interest rates on 30-year fixed-rate mortgages remained low, averaging 5.76 percent, in the third quarter while the 1st 2nd mortgage refinancing rate, key to home equity lending and lines of credit, rose to 6.75 percent,” said Frank Nothaft, Freddie Mac vice |  |
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