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 ?
Traversing the long and matted gallery, I descended the slippery steps of oak; then I gained the hall: I halted there a minute; I looked at some pictures on the walls (one, I remember, represented a grim man in a cuirass, and one a lady with powdered hair and a pearl necklace), at a bronze lamp pendent from the ceiling, at a great clock whose case was of oak curiously carved, and ebon black with time and rubbing.
Everybody present, except the one wigged gentleman who looked at the ceiling, stared at him.
Jaggers, still looking at the ceiling, "the - rate - of?
Sometimes they would fix upon my nose, or forehead, where they stung me to the quick, smelling very offensively; and I could easily trace that viscous matter, which, our naturalists tell us, enables those creatures to walk with their feet upwards upon a ceiling.
The electric light flooded everything; it was shed from four unpolished globes half sunk in the volutes of the ceiling.
That, no doubt, would rise to the ceiling unless you chose to drink it on the way
Strickland took a lamp with him, while I tried to make clear the danger of hunting roof snakes between a ceiling cloth and a thatch, apart from the deterioration of property caused by ripping out ceiling-cloths.
His lips moved without sound and he was studying the coffin on the ceiling.
There are no cornices; but the folds of the whole fabric (which are sharp rather than massive, and have an airy appearance), issue from beneath a broad entablature of rich giltwork, which encircles the room at the junction of the ceiling and walls.
As she did so her eyes glanced casually over the ceiling till they were arrested by a spot in the middle of its white surface which she had never noticed there before.
The ceiling was all too low: torpid spiders hung in disreputable parlors, dead to the eye, but loathsomely alive at an involuntary touch.
From floor to ceiling the walls were covered with a strange and elaborate composition.