Definition of "Cap rates (CAPS)"

DELIA COLMENARES real estate agent

Written by

DELIA COLMENARESelite badge icon

Weichert Realtors HH And Associates

Maximum interest rates a borrower might pay for an adjustable rate mortgage. It controls the amount of change in the rate when it adjusts. The first number is the maximum increase allowed for one period of adjustment; the second is the total increase allowed over the life of the loan. A value of zero shown for the first number means that the loan permits negative amortization. A payment cap limits how much the payment due on the loan can increase or decrease.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Property deed in which the grantor limits the title warranty to the grantee. A grantor does not warrant a title defect to the property occurring from a happening before the time of his ...

Falsify financial records and statements to misrepresent the financial position and operating results of the business. ...

The definition of adjoining properties describes two or more real estate properties, lots, or parcels that shared a boundary. A property that shares a common border with another is ...

Horizontal supports for the ceiling of a structure. ...

Dehydrated gypsum that is mixed with water to form a rapidly setting material. Plaster of paris sets too rapidly to be practical for most building applications, but it is useful for ...

Amount charged for each unit of rental property. An example of a unit might be square footage of space or an apartment. ...

Space reserved for specified vehicles. For example, an office building may have space available for automobiles of tenants, clients of tenants, and other visitors. Parking facilities may be ...

Foreclosed property is sold via a sheriff's deed. The amount received is used to pay the balance of any obligations against the owner or real estate. ...

Properties that about and actually touch and share a common border. Properties B and C are contiguous. Property A is adjacent to properties B and C, but it is not contiguous. ...

Popular Real Estate Questions