What's a Capped Mortgage?

A fixed-rate mortgage is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float".

What does a capped mortgage mean?

Capped mortgages are the only rate type, other than fixed rates, that will give you payment security. They guarantee that your mortgage payment won't go above a certain level, but because they are a kind of variable rate, they also let you benefit from lower payments when rates go down.

What does capped amount mean?

Capped Amount means the greatest amount of Payments that can be provided under this Agreement and all other agreements providing for Payments without any portion of the Payments being subject to the Excise Tax.