43.9k views
0 votes
What is a lifetime cap ?

2 Answers

0 votes

A lifetime cap is the maximum upper limit interest rate allowable on an adjustable-rate mortgage.



User Svenstaro
by
6.3k points
3 votes

Answer:

Lifetime gap is the maximum amount of money that should be given on a mortgage loan.

Explanation:

A lifetime cap, or life cap, tells a borrower the maximum interest rate they could pay during the life of the loan. This cap usually applies to the life of the mortgage. A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money. So the maximum amount that a borrower must repay to the lender in case of a mortgage is called the lifetime gap.

User Wowonline
by
5.5k points