Interest Rate Increase Cap
Definition of "Interest Rate Increase Cap"
The maximum allowable increase in the interest rate on an ARM each time the rate is adjusted. It is usually one or two percentage points.
Popular Mortgage Terms
Points paid by a lender for a loan with a rate above the rate on a zero point loan. For example, a lender might quote the following prices: 8%/0 points, 7.5%/3 points, 8.75%/-2.5 points. ...
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