Annual Cap

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Dictionary Says

Definition of 'Annual Cap'

A clause found in the contract of an adjustable-rate mortgage (ARM) that limits the possible increase in the loan's interest rate to a certain amount each year. The cap is usually defined in terms of rate, but the dollar amount of the principal and interest payment can be capped as well. Annual caps are designed to protect borrowers against a sudden and excessive increase in the amount of their monthly payments when rates rise sharply over a short period of time.
Investopedia Says

Investopedia explains 'Annual Cap'

A loan with an annual rate cap will only increase by so much in terms of percentage points regardless of how much rates actually rise. A 5% ARM with a 2% cap can only adjust to 7%, even if rates increase by 4% over the initial fixed term of the loan. A loan with a dollar cap can only increase by so much as well, although this type of cap can lead to negative amortization in some cases.
Search results for

'Annual Cap'

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    What Is A Small Cap Stock? ... If you don't realize how big "small-cap" stocks
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    ... the same risk profile as the portfolio with 40% large-cap, 30% mid-cap and 30%
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  • The First Small-Cap REIT ETF

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    ... of America's elite is Atrion Corporation (Nasdaq:ATRI), a Texas-based micro cap
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  • Investing In The Overlooked SMid-Cap Space

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    ... Index, the commonly used SMid-cap benchmark, uses this definition to define its
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  • Valuing Large-Cap Stocks

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    ... When comparing companies from different industries, it's wise to replace market
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  • What should I use as a benchmark for my small-cap stock portfolio?

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    ... of the Russell 2000 is $1.05 billion; the largest company is $2.357 billion in size
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  • Stocks For An Inflationary World

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    ... Receivables are negligible at $1.5 billion while annual cap ex is less than
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  • Small Cap Permian Players To Watch

    http://stocks.investopedia.com/stock-analysis/2011/Small-Cap-Permian-Players-To-Watch-AREX-REN-CRK-GPOR1221.aspx
    ... Small Cap Permian Players To Watch. ... There are also a number of small-cap companies
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