A periodic rate cap limits adjustable-rate movements over only a single adjustment period.

Name: A periodic rate cap limits adjustable-rate movements over only a single adjustment period.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

A periodic rate cap is a limit on how much an adjustable-rate can change during a single adjustment period, typically one year. This differs from a lifetime rate cap, which limits the total amount the rate can change over the life of the loan.

A Periodic Rate Cap Limits Adjustable-Rate Movements Over Only a Single