Definition of "Rate cap"

Bernardo  Roman Jr. real estate agent
Bernardo Roman Jr., Real Estate Agent eXp Realty LLC

In an adjustable rate mortgage (ARM), the maximum rate that can be charged during the mortgage period. For example, John obtained an $80,000 6% ARM having a lifetime rate cap of 10.5%.

Have a question or comment?
We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 
 

 

Popular Real Estate Terms

Popular Real Estate Questions