Interest Rate Ceiling


Definition of "Interest Rate Ceiling"

The highest rate possible under an ARM contract; same as 'lifetime cap.' It is often expressed as a specified number of percentage points above the initial interest rate.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Claim Agent

Person who has been authorized by the insurance company to pay a loss (s) incurred by the insured. ...

No-Change Scenario

On an ARM, the assumption that the value of the index to which the interest rate is tied does not c ...

Tort Feasor

Person who commits a tort, a type of wrongful act, that causes injury or damage. ...

Money Damages

Payments awarded by a court in a liability suit. Money damages can be broken down into compensatory ...

Grace Period

A number of days, usually W to 15, that a borrower is allowed to be late in making the mortgage paym ...

Participant

Person covered under an employee benefit insurance plan. ...

Related Real Estate FAQ

How Big Is An Acre?

An acre is an area of land equal to 43,560 square feet. For visuality purposes, an acre is most oft ...

What Is A Cap?

A limit on an adjustable-rate mortgage. ...

What Is A Subprime Mortgage?

A subprime mortgage is a mortgage granted to a borrower who is considered subprime-that is, a person ...

What Is A Subdivision?

A subdivision is a piece of land divided into several plots in which homes are built. ...

What Do I Need To Know About Business Insurance?

Commercial insurance is designed to help protect many of the risks your business can face, including ...

What Is A Home Warranty?

A home warranty is a guarantee for certain features of a new home-for instance, the materials and wo ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Short Sale Homes Build or Buy? That’s the Big Question What do Real Estate Attorneys do? What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? What is Escrow and how does it Work?

FAQ

What is the Tax Benefits of Buying a Home? What is a broker? What is an assumable mortgage? What does an appraisal mean? What is an overall debt ratio?