Definitions for **"Rate cap"**

A limit on the amount of adjustment that can be made in the interest (note) rate on an adjustable rate mortgage at each rate adjustment date.

A feature of an ARM that limits how much the interest rate or mortgage payments may change. Rate caps limit how much the interest rate can rise or fall at the adjustment dates and over the life of the loan.

a limit placed on the changes (increase or decreased) in the interest rate

a limit to how much the

a surcharge credit that offsets any rate increases occurring during the cap period

The maximum amount that the interest rate on an adjustable rate mortgage can rise in a single year.

The maximum that an interest rate will change from one period to the next. This change is for both increases and decreases in the rate.

the maximum amount of interest that can be charged on an ARM loan.

A limit on how much the interest rate can change on an Adjustable Rate Mortgage. Periodic caps limit the rate increased from one adjustment period to the next. Overall caps limit the rate increase over the life of the loan.

An interest rate cap limits how much the rate on an adjustable rate loan can increase. There may be a cap per rate adjustment period (such as 1% per year), as well as a life time cap, which limit the total increase in the interest rate over the life of the loan.

Consumer safeguards that protect the interest rate during the application and processing period.

The limit on the amount the interest rate can be increased at each adjustment period in an adjustable-rate loan. The cap may also set the maximum interest rate that can be charge during the life of the loan.

Protective device in some ARM's that sets a maximum amount that interest rates may rise or decrease annually and over the life of the loan.

a limit on the amount a loan may increase at the time of a rate adjustment..

A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.

See: cap.

The limit on the amount that the interest rate on an ARM can increase or decrease during any one adjustment period.

A limit on how much the interest rate on an ARM loan can change in an adjustment period or over the life of the loan. For example, if your adjustment cap is 1% and your current interest rate is 6%, then your newly adjusted rate will be between 5% and 7%. A lender will provide this information for each of its ARM products.

A limit of how much an interest rate can change in a variable of adjustable rate mortgage either in a given period or over the life of the loan.

The limit on the amount an interest rate on an ARM can increase or decrease during an adjustment period.

A limit on the interest rate which determines loan payments. Rate caps do not create deferred interest. They are offered less frequently than payment caps because they involve a greater risk for lenders.

The rate cap defines rate limits, either from one adjustment period to the next or over the life of the loan.

In an adjustable-rate loan, the ceiling on the amount that the interest rate can be increased at each adjustment

The limit of how much the interest rate may change on an ARM at each adjustment and over the life of the loan.

Periodic caps limit the periodic adjustments, and life caps limit the maximum interest rate allowable on an adjustable rate mortgage.

The maximum interest rate charge allowed on the monthly payment of an adjustable rate mortgage during an adjustment period.