annual cap

(redirected from Annual Caps)

Annual Cap

The maximum amount that an interest rate on an adjustable-rate mortgage may change in a single year. For example, an adjustable-rate mortgage may have an annual cap stating that the rate will not go up more than 1.5% each year. This concept is similar to an interest rate ceiling, but an annual cap does not specify a maximum interest rate. Instead, it limits the speed at which a rate increases.

annual cap

An agreed-upon limit on the amount an adjustable-rate mortgage may increase the interest rate each year.Consumer mortgages usually have annual caps; commercial mortgages usually do not.

References in periodicals archive ?
Under the amendment on June 30, 2015, the annual caps with respect to the fees payable by Tencent to Cheetah for the years ending 2015 were increased to RMB 250 million.
But annual caps on the scheme mean that it stalls once all the money has been handed out and the building industry simply slows down again.
resolution of the Board, the annual caps under the Franchising Contracts
The clause, many tenants hope, will protect them from arbitrary rent hikes in the absence of annual caps on rental increases.
The tax credit for cellulosic biofuel production, set to expire at the end of 2012, would be extended for three years, with annual caps on gallons that qualify for the credit.
Insurance companies can no longer impose a lifetime maximum on health care benefits, and annual caps will be phased out over the next three years before being completely eliminated in 2014.
The regulations indicate many plans should be able to retain grandfathered status, but some consumer protections such as no lifetime or annual caps on how much insurers must pay, no matter whether they have grandfathered status, will be required for all plans after Sept.
Many companies have long for-sworn annual caps on most benefits but retained them on what might be considered auxiliary benefits, such as chiropractic care or occupational therapy.
ANNUAL caps to restrict immigration are unnecessary and could have negative effects, Communities Secretary John Denham said yesterday.
The industry uses about 40 methods, most combining the elements of point-to-point, high point, annual reset, monthly or annual caps, monthly or annual averaging, and yield spreads.
During the legislative process, the industry backed away from its original demands for broad immunity from lawsuits and ultimately asked for predictable annual caps on judgment payments and restrictions in some cases of punitive damages.
The Balanced Budget Act of 1997 imposed annual caps with a limit of $1,500 per beneficiary on occupational therapy and a separate combined cap of $1,500, on physical and speech therapy.

Full browser ?