Life Of Loan Cap


Definition of "Life of loan cap"

James & Catherine Parker <br>The Parker Team
James & Catherine Parker
The Parker Team Carrington Real Estate Services (US LLC)

An upper limit on the interest rate that can be charged in a variable rate mortgage over its life. For example, a variable rate loan is initially offered at 7% loan rate, and its interest rates can be adjusted every three months up to a loan cap of 11%, or 400 basis points.

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