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What are the caps for the Smart Rate Adjustable Rate Mortgage?

There are two different types of caps for adjustable rate mortgages.

The first is a periodic cap which limits how much the interest rate can increase or decrease from one adjustment to the next.

Third Federal's periodic cap is 2% for both the three and five year Smart Rate Adjustable Mortgages.

The second is the lifetime cap which limits how much the interest rate can increase over the life of the loan.

Third Federal's lifetime cap is 6% for both the three and five year Smart Rate Adjustable Mortgages.

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