Sentences with phrase «rise after the initial period»

Plus, it comes with built - in safeguards — called «caps» — that limit the amount the rate can rise after the initial period.

Plus, it comes with built - in safeguards — called «caps» — that limit the amount the rate can rise after the initial period.

Not exact matches

After that initial period, the mortgage interest rate can «adjust», which generally means it will rise.

These loans can start with a lower initial interest rate than a fixed - rate loan, but the interest rate is variable and can possibly rise after a set period of time, leading to higher monthly payments.

However, rates can spike after the initial fixed - rate period if the prime interest rate rises.

The adjustments that happen annually after the initial fixed period will bring the interest rate closer to the current rate at the time of adjustment, which protects the lender because they have chances to increase the interest rate later on if interest rates rise after the mortgage has begun.