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 periodicals archive ?
Given that most folks will be paying 30 percent of income, it's neither here nor there," Gist Gilliam added, citing the CHA's own research, which found that 87 percent of public housing families earn $20,000 or less and would not be affected by the removal of ceiling rents.
USG's Ceiling Panel Recycling Program accepts panels from the continental United States and parts of Canada.
Created out of drywall, the ceiling took Gillispie two months to craft in his spare time.
The ceiling, lowered below the level of a beautiful exposed concrete waffle slab, folds and unfolds like a giant origami, with ceiling cut-outs where light is needed, and planes hanging down from it where spatial divisions are programmatically required.
A few days after, some work was done but the ceiling was still incomplete.
Antonio Villaraigosa's chief of staff, Jimmy Blackman, said he left his desk briefly, only to return to a desk covered with soggy ceiling tiles.
The program enables building owners to ship old ceilings--even if they were not manufactured by Armstrong--from renovation projects to an Armstrong ceiling plant for recycling.
It's made from mineral-bearing solutions--usually calcite--that drip from the ceiling.
Only eligible properly placed in service should be included in the investment ceiling.
The process of finding the source of the moisture intrusion is the hard part, and usually has combined visual inspection, field experience in locating intrusive moisture, the use of contact moisture meters and tearing out wails and ceilings.
That's exactly the reaction Shapiro, owner of Florida Custom Ceilings & Walls Inc.
Returning a week later, I discovered that the pipe for the projector, although properly located and stubbed out from the ceiling, was not threaded, and the ceiling was about to be painted.