Definitions for **"lifetime cap"**

A limit on the amount that the payments of an adjustable rate mortgage can increase or decrease during the mortgage term.

The upper limit for increases in the interest rate on a floating-rate or adjustable-rate instrument.

The total increase in interest rates over the life of the loan as a provision of an ARM.

Also called an Interest Cap, it dictates how much interest rates may increase or decrease per adjustment period or over the life of an Adjustable Rate Mortgage.

See interest rate cap.

A provision of an ARM that describes the limits of the highest or lowest possible interest rate for the entire term of a loan.

In an adjustable rate mortgage, this is the highest percentage rate that can be applied to the loan.

ARM provision that limits the total increase in interest rates over the life of a loan.

is the same as an annual cap on an ARM, except the limit is on how high the interest rate can rise over the entire life of the mortgage.

Ceiling for rate increases over life of an ARM, expressed either as a particular percentage rate or as so many points over or under the initial rate.

A provision of an ARM limiting the highest interest rate that can occur over the life of the loan.

The limit percent on which an initial ARM can adjust to over the life of the loan. EX. Initial Rate - 6.0%; Life Cap - 6.0%; Rate will never be higher than 12.0%.

The limit on the highest interest possible over the life of an adjustable rate mortgage ( ARM).

A lifetime cap is the limit to how much the interest rate on an adjustable-rate loan can be increased over the term of the loan.

Describes the maximum interest rate that can be charged for an Adjustable Rate Mortgage during the life of the loan.

The lifetime cap on an ARM mortgage is the maximum amount the interest rate can increase over the entire life of the loan. So if your initial rate on the ARM was 5% and the lifetime cap is 6%, the interest rate can never go above 11%.

A provision of an adjustable-rate mortgage that limits the total increase in a mortgage interest rate over the life of the loan.

A provision of an ARM that limits the highest rate that can occur over the life of the loan.

A provision to an Adjustable Rate Mortgage (ARM) that states the maximum that a loanâ€(tm)s interest rate can increase over the life of a loan.

This is the cap that limits how high an interest rate can increase over the life of an adjustable-rate mortgage loan . Example: Start rate + 6% = lifetime Cap.

A limit on how high the interest rate on an adjustable-rate mortgage can rise over the lifetime of the loan. oan-to-Value Ratio (LTV) The amount of the loan divided by the purchase price of the house. It is the percentage that shows how much equity a borrower will have in a home. The LTV determines which products are available to the borrower.

For an adjustable-rate mortgage (ARM), a limit on the amount that the enterest rate can increase or decrease over the life of the mortgage.

A provision of an ARM limiting the total increase in the interest rate over the life of the loan.

The maximum interest rate that can be charged during the life of the loan. This value is often expressed as an increment above the initial loan rate. For example, an adjustable rate loan with an initial rate of 4.25% and a 6% lifetime cap will never ad just above a rate of 10.25% (4.25+6.0).

A provision of an ARM that limits the total increase in interest rates over the life of the loan.

The maximum amount of interest an ARM loan can reach during the life of the loan.

the highest the rate can go over the life of the loan

Consumer safeguard which limits the amount the interest rate on an adjustable rate mortgage loan ( ARM) can change over the life of the loan. See Caps.

In an adjustable rate mortgage (ARM), it limits the amount that the interest rate can increase or decrease over the life of the loan.

A limit to the amount an interest rate can increase over the life of an adjustable-rate mortgage loan .