Interest Rate Decrease Cap


Definition of "Interest Rate Decrease Cap"

Philip Curtis
  Equity Pennsylvania Real Estate

The maximum allowable decrease in the interest rate on an ARM each time rate is adjusted. It is usually one or two percentage points.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Dry Mortgages

Creates a lien against the mortgagor's property, but does not permit a lien against his or her perso ...

Retail Lot Sales

Selling lots of land for such reasons as building structure on them including homes, office buildin ...

Countersignature

Licensed agent's signature on an insurance policy. ...

Unbundled

Term that describes commercial insurance with no administrative services attached, or alternatively, ...

Accidental Death And Dismemberment Insurance

Form of accident insurance that indemnifies or pays a stated benefit to insured or his/her beneficia ...

Section 105 Of The Internal Revenue Code

Federal statute that permits the self-employed a 100% tax deduction for the family health care expen ...

Related Real Estate FAQ

What Does A Back-end Ratio Mean?

A borrowers other debts, such as auto loans and credit cards, figured into the debt-to-income ratio. ...

What Is A Closing?

The process of finalizing all the dealing associated with the sale and purchase of a home. (Also kno ...

What Is A Buildable Acre?

A Buildable acre consists of 43,560 square feet of residentially designated buildable land, after ex ...

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 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 Commission?

The fee an agent earns for the sale of a home-usually a percentage of the selling price. ...

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

Mortgage Loan Types What is the Best Time of Year to Buy a Home? Top Five Reasons Your Home Offer was Rejected What Costs Do Buyers and Sellers Pay On Big Day When Escrow Closes? Should you Buy a Home with Cash?

FAQ

What is a quit claim deed? What is a convertible ARM? What is an escrow officer? What is a mortgage? What is a front-end ratio?