PAYMENT CAP. With regard to an adjustable rate mortgage, this limits the amount of increase in the borrower’s monthly principal and interest at the payment adjustment date, if the principal and interest increase called for by the interest rate increase exceeds the payment cap percentage. This limitation is often at the borrower’s option and may result in negative amortization.
PAYMENT CAP
By Realtor Michael Marchena|2012-07-20T00:17:31+00:00July 20th, 2012|Categories: Real Estate News|0 Comments