Annualcap
Barron's Real Estate Dictionary:
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Annualcap
A limit on the amount of adjustment in the interest rate on an adjustable rate mortgage over a twelve-month period.
See cap.
Example: An adjustable rate mortgage has a current interest rate of 8% and an annual cap of 2 percentage points. After one year, the highest the interest rate can be is 10% and the lowest it can be is 6%, due to the cap.
See cap.
Example: An adjustable rate mortgage has a current interest rate of 8% and an annual cap of 2 percentage points. After one year, the highest the interest rate can be is 10% and the lowest it can be is 6%, due to the cap.
| Annual Percentage Rate (APR), Annual Mortgage Constant | |
| Annualdebt Service, Annuity |
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Annualcap
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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