HomeTermsCompareFinance Payment CapThe definition for Payment Cap:A maximum amount for a payment under an Adjustable Mortgage Loan, regardless of the increase in the interest rate. If the payment is less than the interest alone, negative amortization is created. Similar MatchesBalloon PaymentBalloon PaymentThe unpaid principal amount of a loan due on a specific date in the future. Usually the amount that must be paid in a lump sum at the end of the term. Graduated Payment MortgageGraduated Payment MortgageA mortgage or deed or trust calling for increasingly higher payments over the term of the loan. This allows the buyer low beginning payments. The payments then increase as (theoretically) the buyer's earnings increase. Click to compare definitions of Payment Cap Click to view definitions beginning pa |