Interest Rate Ceiling
For example, the terms of the loan might state that the interest rate can never exceed 19%.
An interest rate ceiling is sometimes used interchangeably with the term "lifetime interest rate cap". However, an interest rate cap is usually expressed as a maximum change allowed in an initial interest rate.
For example, a 5% interest rate cap would suggest that the interest rate on the borrower's loan can fluctuate within a 5% range during any specific rate adjustment period.
Investment dictionary. Academic. 2012.
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Interest rate ceiling — Related: interest rate cap. The New York Times Financial Glossary … Financial and business terms
interest rate ceiling — See: interest rate cap … Financial and business terms
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Interest rate cap — Also called an interest rate ceiling, an interest rate agreement in which payments are made when the reference rate exceeds the strike rate. The New York Times Financial Glossary … Financial and business terms
interest rate cap — See cap. American Banker Glossary An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling. Bloomberg Financial Dictionary … Financial and business terms
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