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Is there a limit to how much interest I ll be charged?

April 26, 2017charged limit LL

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Is there a limit to how much interest I ll be charged?

1 Answer

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Posted

Yes. It s called a ceiling, or lifetime cap. This is a guarantee that your interest rate will never exceed a designated percentage. For instance, if your introductory rate was 5% and you have a lifetime rate cap of 6% (meaning that your interest rate can never increase more than 6% during the life of the loan) then your ceiling would be 11%.