Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
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Rate Cap
Also called Cap. The limit on the amount that the interest rate on an * ARM (Adjustable Rate Mortgage) can increase or decrease during any one adjustment period.
Glossary For This Page
(In Alphabetical Order)
* ARM
Also called Adjustable Rate Mortgage. A mortgage loan subject to changes in interest rates. When rates change, ARM monthly payments increase or decrease at intervals determined by the lender.
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