Mortgage Dictionary: Definition of Periodic Cap
Here is the definition for 'Periodic Cap'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.
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Periodic Cap
A periodic cap is a type of
rate cap
used in some
adjustable-rate mortgages
. It sets limits on the amount that
interest rates may rise or fall annually.
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