Interest rate increase cap
Definition
The maximum allowable increase in the interest rate on an ARM each time the rate is adjusted. It is usually 1 or 2 percentage points, but may be 5 points if the initial rate period is 5 years or longer. See Information to Evaluate an Adjustable Rate Mortgage.
Related Terms Other terms related to 'Interest rate increase cap' starting with the letter 'I' Interest rate floor, Interest cost, Internet mortgages, Interest rate decrease cap, Interest payment Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 