Interest rate decrease cap
Definition
The maximum allowable decrease in the interest rate on an ARM each time the rate is adjusted. It is usually 1 or 2 percentage points. See Information to Evaluate an Adjustable Rate Mortgage.
Related Terms Other terms related to 'Interest rate decrease cap' starting with the letter 'I' Interest cost, Interest rate index, Initial interest rate, Interest only mortgage, Indexed ARM 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 | 