HEDGE · LIBRARY · MORTGAGE
Mortgage rate hedge
Protect against rates rising before your refinance window. If rates are above your threshold on the FOMC announcement, this policy pays the additional interest you'd otherwise owe.
SENSIBLE DEFAULTS
- Exposure Amount USD
- $400,000
- Magnitude Per % Pt
- $12,000
- Threshold %
- 7
- Timeframe Label
- Next FOMC meeting
- Trigger Condition
- Fed effective rate above 7% at next FOMC
You'll be able to override each parameter on the next screen before issuing.