With CAP loan between variable and fixed rate
by admin on 01/09/08 at 9:56 am
The loan with CAP can be placed between the fixed rate and variable rate.
The product consists of an interest rate tied annum and so fluctuating as a variable rate, but has a cap (CAP) beyond which it cannot go.
To ensure this benefit the bank in the proposed package, which offers insurance cover to a certain number of percentage points more than the excursion limit, but only for a certain period of time?
Naturally, however, the bank charges this warranty with a further spread should be about 1 percentage point.
In periods where it can be handy to have an interest rate variable low, but do not want to risk too much in the future, a product of this type can do the job.
Banks offer pre-packages, try to ask at your branch and let us know.
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