caps (payment)
Limits on the amount a monthly payment on an adjustable rate mortgage (ARM) may change during an adjustment interval or over the life of the loan. Although designed as a consumer safeguard, it also helps the lender indirectly as monthly payments remain realistic for the borrower.
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The following dictionary definition list is provided for clarification only. Note that many definitions are not directly applicable to mortgages, loans or other financial terminology in this glossary. Used with permission: WordNet 2.1 Copyright 2005 by Princeton University. All rights reserved.
caps
Noun: cap (a tight-fitting headdress)
Noun: cap (a top (as for a bottle))
Noun: detonator, detonating device, cap (a mechanical or electrical explosive device or a small amount of explosive; can be used to initiate the reaction of a disrupting explosive)
Noun: cap (something serving as a cover or protection)
Noun: cap, pileus (a fruiting structure resembling an umbrella that forms the top of a stalked fleshy fungus such as a mushroom)
Noun: ceiling, cap (an upper limit on what is allowed) "they established a cap for prices"
Noun: crownwork, cap (dental appliance consisting of an artificial crown for a tooth)
Noun: capital, chapiter, cap (the upper part of a column that supports the entablature)
Verb: cap, crest (lie at the top of) "Snow capped the mountains"
Verb: cap (restrict the number or amount of) "We had to cap the number of people we can accept into our club"
payment
Noun: payment (a sum of money paid)
Noun: payment, defrayal, defrayment (the act of paying money)
- caps (payment) -
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