initial interest rate cap


Highest amount that the interest rate on an adjustable rate loan can go on the first adjustment date. This is included with the structure of the interest rate cap and it is helpful in giving borrowers some type of protection from their rate going too high at once. Conversely, this cap also limits the benefit that borrowers could get from large reductions in the interest rate.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
initial interest rate initial jobless claims