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


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.


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.


(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 ?
Their updated upper limit of serum ALT for men was 30 U/L,much lower than 40 U/L,considered normal at that time for Italian population.
For each continuous group, four statistics (geometric mean, estimated 90th percentile, upper limit of geometric mean, and upper limit of estimated 90th percentile) are calculated using the following equations.
We exogenously assume that the private insurance is a contract with an upper limit and reexamine whether the policy limit alone (without price regulation) makes tax deduction for net losses socially optimal.
The upper limits have been gradually raised due to requests from the Chinese.
The upper limit for vitamin C, from both food and supplements, is 2,000 milligrams a day.
This textbook, though, discusses only a simplistic situation that does not involve earnings thresholds or upper limits on bonuses.
An example is the missing upper limits for vitamins and minerals, which has been under discussion, both EU-wide and at a national level, for quite some time.
Upper limits exceeding the maximum loss and negative deductible levels do just as well.
Elkies of Harvard University published a way to modify Delsarte's method to produce upper limits for the density of any sphere packing in dimensions 8 and 24.
A separate law governing interest levels, the Interest Rate Control Law, stipulates different upper limits.
This molded connector - the newest from 3M - resists warping and expansion even when pushed to the upper limits of its wire ranges.
Topics discussed included nutrient content claims, health claims, recommended intakes, upper limits and the economic impact of omega 3 consumption.