What’s a pastime Price Ceiling?
Mortgage loan roof may be the maximum rate of interest allowed in a specific deal. It’s the reverse of mortgage flooring.
Monetary deals often consist of mortgage loan roof included in their provisions that are contractual. As an example, they truly are widely used in adjustable-rate home loan agreements (ARMs).
- Mortgage loan roof is just a contractual supply outlining the most rate of interest allowed for the deal.
- They have been widely used in variable-rate loans, such as ARMs.