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Rate cap

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

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Related terms

rate caps
Real estate; General

Rate caps limit how much the interest rate can move up or down.

rate cap
Real estate; General

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

interest rate cap
Financial services; Stocks & securities

An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price.

interest rate cap
Financial services; General Finance

An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.

periodic rate cap
Real estate; General

The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

periodic rate cap
Real estate; General

The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

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