Interest limits on an adjustable rate loan, usually mortgages. There are various types of interest rate cap structures such as the initial cap that limits the amount of interest that can be charged at the first adjustment date, and the period cap which limits the amount that the interest rate can adjust at each of the subsequent adjustment dates.
Related information about interest rate cap structure:
- Interest Rate Cap Structure Definition | Investopedia
Limits to the interest rate on an adjustable-rate loan - frequently associated with a mortgage. There are several different types of interest rate cap structures ...
- Periodic Interest Rate Cap Definition | Investopedia
A part of an interest rate cap structure on loans and mortgages. The periodic interest rate cap limits the amount by which the interest rate on an adjustable rate ...
- Initial Interest Rate Cap Definition | Investopedia
This is part of the interest rate cap structure on the loan, usually a mortgage, which helps to give borrowers some protection from payment shock but does limit ...
- What is interest rate cap structure? definition and meaning
Definition of interest rate cap structure: Interest limits on an adjustable rate loan, usually mortgages. There are various types of interest rate cap structures such ...
- FHA Adjustable Rate Mortgage - HUD
An ARM has four components: (1) an index, (2) a margin, (3) an interest rate cap structure, and (4) an initial interest rate period. When the initial interest rate ...
- Adjustable-Rate Mortgages (ARM) - Interest Rates, Benefits and Risks
Increases or decreases in the interest rate will be limited by the interest rate cap structure of your loan, which provides protection from large interest rate swings.
- 24 CFR 206.21 - Interest rate. | LII / Legal Information Institute
Apr 1, 2012 ... (1) A mortgagee offering an adjustable interest rate shall offer a mortgage with an interest rate cap structure that limits the periodic interest rate ...
- 24 CFR 206.21 - Interest rate. - Regulations - United States - vLex
(1) A mortgagee offering an adjustable interest rate shall offer a mortgage with an interest rate cap structure that limits the periodic interest rate increases and ...