interest cap
Lending rate limit
An interest cap is a ceiling on how high an interest rate can rise.
Adjustable-rate mortgages typically include caps protecting borrowers from dramatic payment increases: The loan has a 2% annual interest cap and a 6% lifetime cap.
Credit card agreements may also specify interest caps, though these are often set high enough to rarely matter.
- fixed-rate mortgageLoan with constant interest
- loan agreementDocument governing borrowed funds
- monthly paymentRecurring scheduled remittance
- hedgingNoncommittal maneuvering
- adjustable-rate mortgageHome loan with shifting interest
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