Mortgage Handbook

Home Mortgages:

Home Mortgage Lenders

Home Mortgage Rates

Home Mortgage Quotes

Residential Mortgages

New Home Mortgages

Mobile Home Mortgages

Condo Mortgages

Home Mortgage Refinancing

Home Equity Loans

Commercial Mortgages:

Commercial Mortgage Lenders

Commercial Mortgage Rates

Commercial Mortgage Quotes

Commercial Mortgage Refinancing

Types of Mortgages:

Repayment Mortgages

Interest-Only Mortgages

Fixed-Rate Mortgages

Veriable-Rate Mortgages

Capped-Rate Mortgages

Capped-rate mortgages are designed to provide borrowers with the flexibility of a floating rate, while giving them the peace of mind of a limit on how high that rate can go.

The cap on these mortgages is usually 2 to 3 percentage points above the base rate on short-term loans (less than five years), and 5 to 6 percentage points above on longer term mortgages.

Although these “best of both worlds” mortgage deals can be beneficial to some borrowers in the long term, they often com hand in hand with an over-inflated initial interest rate.