Rate Cap

1 topic · 3 sources

Real Estate

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

Federal Trade Commission — Real Estate Marketplace Glossary

See: cap.

Ginnie Mae — Ginnie Mae Glossary of Terms

A limit on an ARM on how much the interest rate or mortgage payment may change. Rate caps limit how much the interest rates can rise or fall on the adjustment dates and over the life of the loan.

US Department of Housing and Urban Development — Homes & Communities Glossary