Rate Protection Example. A customer capped rate is 8.375% with 1 Point and 1% Origination Fee. If the closing occurs on or before the rate cap expiration, the market rate in effect at 12:00p.m. EST, five (5) calendar days before closing will be used to determine the customer’s rate. • The market rate , which is 8.00% with 1 Point and 1% Origination Fee, is lower than the capped rate – Customer will receive the market rate • The market rate, which is 8.375% with 1 Point and 1% Origination Fee, is the same as the capped rate – Customer will receive the capped rate. • The market rate which is 8.75% with 1 Point and 1% Origination Fee, is higher than the capped rate – Customer receives the capped rate. ** Please note that the above rates are intended to be used as examples only; they do not reflect current market conditions or your own mortgage interest rate.
Appears in 6 contracts
Sources: Interest Rate Confirmation Agreement, Interest Rate Confirmation Agreement, Interest Rate Confirmation Agreement