ARMs may contain caps or ceilings associated with interest rate changes. There may be an annual cap and a lifetime cap. Caps are designed to give a borrower protection against increases in interest rates. There are no prepayment penalties on an ARM loan. Leasing Leasing is an useful financing alternative that can maximize your cash flow and possibly reduce your taxes in certain situations.
Leases are especially useful for equipment.
Ask your loan officer to run a lease - loan comparison to see if leasing may be an option for you.