The limit on the number of times an interest rate can be adjusted on an adjustable-rate mortgage over a 12-month period.
is the limit on how high the interest rate of an ARM can rise during the single year. Annual caps are specified in all of the better ARM mortgage programs. Don't sign without one.
The limit on the amount an adjustable rate mortgage's interest rate can change over a 12-month period. An annual cap prevents your payments from changing too dramatically, even if the factors that determine changes in an adjustable mortgage's rate rise or fall sharply during that period.
Highest or lowest amount that the interest rate of an ARM can increase or decrease in a year.
The highest or lowest amount the interest rate of an ARM loan can increase or decrease in any one year.
in a gas buyerâ€(tm)s purchase agreement, there is often a limit higher than the annual contract quantity, above which the seller is not liable to sell. This is the annual cap and is usually stated as a percentage of the ACQ. Also known as the maximum annual quantity. see also MAQ
Annual maximum adjustment of your adjustable rate mortgage. For example, if your annual cap is 2%, your mortgage interest rate can only increase by a maximum of 2% regardless of how much the index which your interest rate is increased.
The maximum amount the interest on an adjustable-rate mortgage can be raised or lowered in the course of a 12-month period.
An annual or maximum amount which the interest rate can be adjusted upward. This protects the borrower from excessive interest rates and is normally associated with adjustable rate mortgages.
Amount the interest rate of an adjustable rate mortgage can be raised or lowered in any consecutive 12-month period.
