A few lenders on the street offer a capped variable rate option. Under that option, as the prime rate that impacts variable rate rises, your monthly mortgage payment stays the same, the percentage of payment that goes toward principal declines, and the percentage of payment that goes toward interest increases. This is a good option if none of the other alternatives discussed below work, and you are okay with taking longer to pay off your mortgage because you are now paying less principal as rates rise.
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