Definitions for "interest rate cap"
A provision of an adjustable rate mortgage limiting how much interest rates may increase in a single adjustment period.
A limit on how much a borrower's percentage rate can increase or decrease at rate adjustment periods and over the life of the loan. Interest rate caps are used for ARM loans where the rates can vary at certain points.
Consumer safeguards that limit the amount the interest rate on a variable rate loan can change in an adjustment interval and/or over the life of the loan.
Jumbo Mortgage Legal Description