Ceiling


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Ceiling

The highest price, interest rate, or other numerical factor allowable in a financial transaction.

Ceiling

The maximum interest rate that may be charged on a contract or agreement. For example, an adjustable-rate mortgage may have an interest rate ceiling stating that the rate will not go over 9% even if the formula used to calculate the interest rate would have it do so. An interest rate ceiling reduces the risk of the party paying the interest. It is also called an interest rate cap. See also: Interest Rate Floor.

Ceiling.

If there is an upper limit, or cap, on the interest rate you can be charged on an adjustable-rate loan, it's known as a ceiling.

Even if interest rates in general rise higher than the interest-rate ceiling on your loan, the rate you're paying can't be increased above the ceiling.

However, according to the terms of some loans, lenders can add some of the interest they weren't allowed to charge you because of the ceiling to the total amount you owe. This is known as negative amortization.

That means, despite a ceiling, you don't escape the consequences of rising rates, though repayment is postponed, often until the end of the loan's original term.

Ceiling can also refer to a cap on the amount of interest a bond issuer is willing to pay to float a bond. Or, it's the highest price a futures contract can reach on any single trading day before the market locks up, or stops trading, that contract.

ceiling

(1) The uppermost surface of a room or space. When a lease makes all improvements “below ceiling”the responsibility of the tenant,one must ask if “ceiling”means the concrete bottom of the floor above,or if it means the suspended grid system with ceiling tiles.The space in between the two is called the plenum.All the wiring,plumbing,and ductwork go through the plenum,so the choice of which surface is the “ceiling”could mean a substantial difference in tenant responsibilities.

(2) An upper limit on something,such as the IRS ceiling of $1,000,000 worth of home mortgage debt for which one can deduct mortgage interest.

References in classic literature ?
A luminous ceiling, decorated with light arabesques, shed a soft clear light over all the marvels accumulated in this museum.
You will all go where he is gone, or" - he pointed to the great coffin-shadow on the ceiling, and muttering, "Seventy millions - get a-way, you old peoples," fell asleep.
George looks distrustfully from the painted ceiling to the ground, from the ground to Mr.
There are the cobwebs on the ceiling, a bloated spider crawling in one: a worse monster is gloating over me: those dull eyes of his, and my own pistol-barrel, cover me in the lamp-light.
The interior of the den was no less dilapitated than she; there were chalk walls, blackened beams in the ceiling, a dismantled chimney-piece, spiders' webs in all the corners, in the middle a staggering herd of tables and lame stools, a dirty child among the ashes, and at the back a staircase, or rather, a wooden ladder, which ended in a trap door in the ceiling.
A few ingots toppled from the higher tiers, a single piece of the rocky ceiling splintered off and crashed downward to the floor, and the walls cracked, though they did not collapse.
The Wieroo raised his wings in a very human shrug and waved his bony claws toward the human skulls supporting the ceiling.
Its light illuminated a strip of thick tapestry, hanging loose from the ceiling to the floor, on the wall opposite to the door by which we had entered.
Indignant as he was at this impertinence, there was something so exquisitely absurd in such a cartel of defiance, that Nicholas was obliged to bite his lip and read the note over two or three times before he could muster sufficient gravity and sternness to address the hostile messenger, who had not taken his eyes from the ceiling, nor altered the expression of his face in the slightest degree.
And so there he lay on the uppermost bank in the vapor-bath; but with all his clothes on, in his boots and galoshes, while the hot drops fell scalding from the ceiling on his face.
eyes to the ceiling with heartfelt devotion, and said, "Thank God, Richard
He threw it to the floor, against the walls of the room, and even up to the ceiling.