is there a cap on interest rates for mortgage loans?

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2 Comments
  1. Reply
    Steve D
    May 14, 2011 at 1:07 am

    On a state by state basis, there may be caps due to usury laws.

  2. Reply
    loanmasterone
    May 14, 2011 at 1:39 am

    The quick answer to your question is yes there is normally a rate cap on each adjustable rate mortgage.

    Now that cap is determined by the index that it is tied to. So in order to determine your cap you would need to look at your loan docs you signed or is about to sign to determine the index your adjustable mortgage is tied to, the number of months the mortgage may adjust in a year.

    This could be every three months, six months or a year.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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