The Purpose of a Rate Cap with a Variable Rate

question 98

Multiple Choice

The purpose of a rate cap with a variable rate mortgage is to

• A)minimize interest costs.
• B)prevent changes in the amount of the monthly payment.
• C)increase negative amortization.
• D)restrict the amount by which the interest rate can increase.
• E)lower the escrow account.

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Definitions:

QBO

QuickBooks Online, a cloud-based financial management software used for business accounting.

Presentation

A prepared speech or display of information on a particular topic, usually involving visual aids.

Quality

The standard or degree of excellence of a product, service, or process, often measured against other similar items.

Impersonal Journalism

A style of journalism that prioritizes objectivity and factuality, minimizing the influence of personal bias.