When exactly does the 6% interest rate cap of the SCRA go into effect for a servicemember or spouse/dependent?
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Section 527 of the SCRA provides that the limitation goes into effect when you send your lender a written notice and a copy of your orders calling you to active duty.
Your lender will apply the limitation as of the date you received your orders (for those called to active duty) or the date you began serving on active duty for those who join voluntarily.
That 6% rate cap will apply during your period of military service and one year thereafter, in the case of a mortgage, trust deed, or other mortgage type security and only during the period of military service in the case of any other loan.
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