On an adjustable rate mortgage, do borrowers always prefer smaller (i.e. tighter) rate caps that limit the

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On an adjustable rate mortgage, do borrowers always prefer smaller (i.e. tighter) rate caps that limit the amount the contract interest rate can increase in any given year or over the life if the loan? Explain why or why not.

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Real Estate Principles A Value Approach

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Authors: David C Ling, Wayne Archer

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Question Posted: May 27, 2018 06:24 AM

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On an adjustable rate mortgage, do borrowers always prefer smaller (i.e. tighter) rate caps that limit the

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Borrowers preferences are influenced by their expectations of fu...View the full answer

Real Estate Principles A Value Approach

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