HomeTermsCompareFinance CapThe definition for Cap:The maximum which an adjustable rate mortgage may increase, regardless of index changes. Similar MatchesCapital AssetsCapital AssetsAssets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines. Capital GainsCapital GainsGains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes. Interest CapInterest CapThe maximum interest rate increase of an Adjustable Mortgage Loan. For example: a 120% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%. Further SuggestionsLong Term Capital GainPayment Cap Recapture Of Depreciation Click to compare definitions of Cap Click to view definitions beginning ca |