Zillow Advice: Mortgage - What is CAP? http://www.zillow.com/advice-thread/What-is-CAP/510294/ Zillow Advice | Zillow Real Estate Thank you everyone for taking ... http://www.zillow.com/advice-thread/What-is-CAP/510294/ Thank you everyone for taking your time to reply! I appreciate it! I don't know why I just don't understand this "CAP" terminology and how it works! If it's a good thing or a bad thing.<br/><br/>Could you help me decipher this? I'm still in the mud about this. Thanks so much!!! <br/><br/><p class="MsoNormal">90 day lock- .125 Cap</p><p class="MsoNormal">120 day lock- .375 cap (on a fixed rate)</p><p class="MsoNormal">&nbsp;</p><p class="MsoNormal">If you lock for 90 days, there is no add to your cost, but there is an .125 cap to the rate, so if you lock at 3.5% you are guaranteed 3.625 at the worse.&nbsp; On the 120 day at 3.5%, the cap would be 5.875, which is what I sent you before.&nbsp; Then, once you are inside 60days of closing, anytime during that 60 day period up to the time we draw documents, you get a 1 time free re-lock.&nbsp; So if the rate goes down to 3.25%, you can lock at 3.25, and the cap totally goes away.&nbsp; There is no cap added if you re-lock, it is only during the original lock that the cap is in play.</p> Mon, 09 Sep 2013 19:22:00 GMT http://www.zillow.com/advice-thread/What-is-CAP/510294/ 2013-09-09T19:22:00Z Clay is right on. Old Broker ... http://www.zillow.com/advice-thread/What-is-CAP/510294/ <p>Clay is right on. Old Broker Shop methodology. The rate is maybe not locked at all? &nbsp;It will be locked when 100%&nbsp;submitted with a specific lender? If so this can be a risky practice in this day and age, as markets can move heavily from one&nbsp;hour to the next. Hopefully they will drop your rate reciprocally if the market dictates.</p> Fri, 06 Sep 2013 23:06:00 GMT http://www.zillow.com/advice-thread/What-is-CAP/510294/ 2013-09-06T23:06:00Z The only CAP we in this industry ... http://www.zillow.com/advice-thread/What-is-CAP/510294/ The only CAP we in this industry refer to, involves a loan product called an ARM-&nbsp; Rate CAPs mean that you'll never go above a certain rate...<br/><br/>As for the extensions you're referring to, I'm sorry you're even having to wait THAT long to complete your loan...&nbsp; Find another lender.<br/><br/>Good Luck! Fri, 06 Sep 2013 22:51:00 GMT http://www.zillow.com/advice-thread/What-is-CAP/510294/ 2013-09-06T22:51:00Z I do not have any investors ... http://www.zillow.com/advice-thread/What-is-CAP/510294/ I do not have any investors that quote an extended rate lock that way but I believe that means the rate quoted on the 90 day lock can increase .125% and the 120 day can increase .375%. Fri, 06 Sep 2013 21:49:00 GMT http://www.zillow.com/advice-thread/What-is-CAP/510294/ 2013-09-06T21:49:00Z