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An adjustable rate mortgage (ARM) allows the lender to adjust the interest rate of a mortgage at scheduled intervals. A rate cap limits the amount the lender may increase or decrease the interest rate per each adjustment. Many ARMs also have life of loan rate caps. This represents the highest or lowest interest rate a loan may adjust to over the life of the loan.
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A massive wave of homeowners now has an incentive to refinance their mortgages and they could find the process faster than it’s been in recent memory thanks to technology improvements. Borrowers of.
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