Interest Rate Ceiling
What does it mean
An Interest Rate Ceiling refers to the highest level the interest rate a loan with a variable rate can increase to.
Why does it matter
Interest Rate Ceilings matter because as with anything that has to do with loan structuring, the specifics are only restricted by your level of creativity and ability to negotiate. Interest Rate Ceilings can extend for the life of the loan or for only a certain period of time. Interest Rate Ceilings can even be negotiated to change over time.
Other Relevant Terms
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