Make California Home

A mortgage is the transfer of an interest in property (equivalent in law – a charge) to a lender as a security for a debt – usually a loan of money. Capped mortgages are very similar to fixed-rate mortgages, in that they will not climb above a pre-set rate, known as a cap. A lender offers a loan with a capped rate set for a certain period. During this period, the repayments of interest on the loan cannot climb above this cap.