Find us on Facebook Follow us on Twitter About us   |   Blog   |   Login



Answers

Knowledgebase Home | Favorites | Forum
Search the Knowledgebase Browse by Category
What is an interest rate cap?
Article Details

Last Updated
2nd of November, 2009

User Opinions (2 votes)
50% thumbs up 50% thumbs down

Thank you for rating this answer.
An interest rate cap is a limit on how much a borrower’s percentage rate can increase or decrease at rate adjustment periods and over the life of the loan. Interest rate caps are used for ARM loans where the rates can vary at certain points.

Thinking about purchasing or refinancing a home? Learn about the homebuying process and refinancing options.





Related Articles