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 ?
The third annual CAP campaign will consist of a series of public service announcements on NBC 7 San Diego and cable networks on the COX channel lineup that will direct viewers to SafetyNet, an informative site that houses online safety tips and resources.
Customer s annual cap annual incentive cap increases to $500,000 for 2015(normally $400,000)
Why not just put a annual cap on the number of immigrants coming in to Britain like other countries do ?
Rents will be fixed by the Welsh Assembly with an annual cap on rises of pounds 3 a week.
It proposes to extend limits on campaign spending beyond the period immediately before an election, suggesting that an annual cap on expenditure could be imposed.
A bi-partisan bill proposed by Democratic senators which could place an annual cap on the tobacco industry's legal payouts, coupled with a rumour that Kleinwort was upgrading its stance on the tobacco industry convinced Schwab customers to jump out of BAT Industries while the going was good.
There is an annual cap of $250,000 on penalties imposed for failures to send information returns to the IRS and an annual cap of $100,000 on penalties resulting from failures to provide statements to payees.
Chemical Company with an annual cap for transaction amount of
Meanwhile, Conservative leader Michael Howard last night said an annual cap had to be placed on immigration for the sake of security and good community relations.
In order to manage intake, maintain reasonable processing times and prevent a backlog from developing in the CEC, Citizenship and Immigration Canada (CIC) is introducing an annual cap on the number of new CEC applications.
Distributors of PC software applications with OMA and/or Marlin functionality are also entitled to an annual cap of EU400,000 on the EU0.

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