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Protecting Buyers from Interest Rate Spikes: How to Set a Rate Cap in Financing Terms

If your buyer is concerned about drastic changes in interest rates, you may want to include a provision in the Additional Financing provisions that caps the rate at a level acceptable to the buyer.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.