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HomeStreet Bank agrees to sell chunk of its mortgage business – Seattle-based HomeStreet appears to be moving really quickly to unload portions of the company’s mortgage business. The bank on Feb. 15 announced plans to sell its home loan centers and a majority of.
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An adjustable rate mortgage (ARM) allows the lender to adjust the interest rate of a mortgage at scheduled intervals. A rate cap limits the amount the lender may increase or decrease the interest rate per each adjustment. Many ARMs also have life of loan rate caps. This represents the highest or lowest interest rate a loan may adjust to over the life of the loan.
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