annual cap

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 ?
Citizenship and Immigration Services (USCIS) accepted new H-1B petitions subject to the annual cap, USCIS received approximately 233,000 petitions for only 85,000 available H-1B visas (65,000 in the general H-1B cap plus 20,000 in the Master's cap).
The Liberal Democrats support a PS10,000 annual cap on donations to political parties to limit the capacity of wealthy backers to buy influence in the political process and access to leading politicians.
This is why Liberal Democrats support a PS10,000 annual cap on donations to political parties to limit the capacity of wealthy backers to buy influence in the political process and access to leading politicians, and reforms to party funding along the lines of the recent report of the committee on Standards in Public Life.
The surcharges are reportedly federally mandated to offset the 18% annual cap on rate increases.
Under the scheme, savers who have not yet retired will receive up to 90% of the expected retirement income, up to an annual cap of around PS30,000.
This confusion is a problem and would be reduced if the government returns to the old system of an annual cap on all rentals.
The British Retail Consortium has said that the current system is no longer fit for purpose and is pressing for a 2% annual cap on business rate increases, rather than the current benchmark of the Retail Price Index.
A bailout provision included in the product allows for the annuity owner to withdraw the whole contract value of the annuity without incurring a penalty as long as the declared annual cap strategy falls below the contract's bailout cap.
Similarly, the government is more likely to opt for the option of raising the price of cooking gas by Rs 65-Rs 100 per cylinder now, along with a higher annual cap of nine cylinders, and leave the remaining subsidy to be tackled post budget when its global prices start climbing down.
So a new program in Brazil will try reducing prison sentences four days for prisoners who read a book and submit a book report, with an annual cap for time off set at 12 books per year.
The Government has pledged to cut net migration from the current 242,000 to the "tens of thousands" last seen in the 1990s, with crackdowns on forced and sham marriages, bogus students and an annual cap on immigrants coming from outside the EU.
(110) An annual cap can distort the purpose of an historic preservation credit by "rewarding projects that do not require an incentive while excluding projects that cannot proceed without the state incentive." (111) Second, many state historic preservation tax credit programs have individual project caps.

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