capped rate

/ˌkæpt 'reɪt/ verb
a mortgage rate which is guaranteed not to go above a certain level for a set period of time, although it can move downwards

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • capped rate — ➔ rate1 * * * capped rate UK US noun [C] ► FINANCE, PROPERTY an interest rate on a loan that will not rise above an agreed rate for an agreed period of time: »A capped rate guarantees your mortgage will not rise above a certain level …   Financial and business terms

  • capped-rate — UK US adjective [before noun] ► FINANCE, PROPERTY a capped rate loan is one with an interest rate that will not rise above an agreed rate for an agreed period of time: »a capped rate mortgage/loan »If the home buyer wants security against rising… …   Financial and business terms

  • Capped Rate — An interest rate that is allowed to fluctuate, but which cannot surpass a stated interest cap. For example, a 10 year loan may be issued to a borrower at 6%, but with a capped rate of 9%. The interest rate can thus fluctuate up and down, but can… …   Investment dictionary

  • capped-rate mortgage — ➔ mortgage1 …   Financial and business terms

  • rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …   Financial and business terms

  • rate-cap — rate caps, rate capping, rate capped 1) VERB: usu passive In Britain, when a local council was rate capped, the government prevented it from increasing local taxes called rates, in order to force the council to reduce its spending or make it more …   English dictionary

  • capped floating-rate note — capped FRN See: floating rate note …   Accounting dictionary

  • capped FRN — capped floating rate note …   Accounting dictionary

  • capped floating rate note — /ˌkæpt fləυtɪŋ reɪt ˌnəυt/ noun a floating rate note which has an agreed maximum rate …   Dictionary of banking and finance

  • Capped Note —    A floating rate instrument with a cap that places a maximum coupon rate on the issue.    ► See also Cap …   Financial and business terms

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