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 ?
But the increase is well above the 1% annual cap imposed on most public sector workers since 2010, although it lags behind inflation of 3%.
But the increase is well above the 1% annual cap imposed on most public-sector workers since 2010, although it lags behind inflation of 3%.
In addition to todays resumption of premium processing for H-1B visa extension of stay petitions, USCIS had previously resumed premium processing for H-1B petitions subject to the annual cap, petitions filed on behalf of physicians under the Conrad 30 waiver program, as well as interested government agency waivers and certain H-1B petitions that are not subject to the cap.
The apex court later in May 2013 relaxed its order allowing mining with an annual cap of 20 million tonnes.
We expect a greater inflow from foreign investors now that the Central Bank of Egypt (CBE) has ended the $100,000 annual cap on the amount that account holders can transfer outside Egypt.
According to reports, the restricted recommendation includes a proposed discount on cost, an annual cap on cost per patient as well as guidance on the treatment of those suffering from hypophosphatasia and people with perinatal or infantile-onset disease.
The Core EA is an enterprise-wide entitlement with an annual cap, and covers the following products: Red Hat Enterprise Linux (RHEL) Server x86 Variants; RHEL Client (Desktop and Workstation); RHEL Real Time; RHEL Add-Ons; RHEL Management and Provisioning Tools (Satellite).
Charges, which are apportioned on the amount of individual usage, include servicing and insurance, with an annual cap of 15,000km.
The company anticipates that the annual cap rate on the property will average between 8% and 10% over the life of the lease.
The lawsuit filed last year, argued that the state's annual cap on "adequacy funding" aid to school districts on a per-pupil basis shortchanges Dover students and violates principles of the state constitution.
What's more, the state recently bumped up the annual cap for its incentive program to $40 million, and it offers a 30% tax credit that's refundable and transferable.
The scheme has an annual cap of 500 grams per person.

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