Definition: The maximum interest rate an adjustable-rate loan can ever adjust.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Also Known As: capped loan rate
Examples:
Many adjustable-rate loans cap at plus 6, so if your rate starts at 5%, the highest it can ever increase over the life of the loan is 11%.
