The limit on the maximum amount the interest rate can change in any adjustment period following the initial interest rate change on an ARM loan.
the maximum limit per rate adjustment during the pre-determined periods of adjustment during the life of the loan.
() The maximum rate increase for a specific period for a specific loan (ARM) only.
This cap limits the amount that the interest rate of an adjustable-rate mortgage can change up or down in one adjustment period. See also caps.
Glossary-P Consumer safeguard that limits the amount the interest rate on an adjustable rate mortgage ( ARM) can change in an adjustment interval.
The limit on the amount that the interest rate of an adjustable-rate mortgage can change up or down in one adjustment period.
Consumer safeguard which limits the amount the interest rate on an adjustable rate mortgage ( ARM) can change in an adjustment interval. See Caps.
In an adjustable-rate mortgage (ARM), it limits how much an interest rate can increase or decrease from one adjustment period to the next.