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Mortgage Dictionary: Definition of Lifetime Cap

Here is the definition for 'Lifetime Cap'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.

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Lifetime Cap

A lifetime cap is a type of rate cap used in some adjustable-rate mortgages . It sets limits on the amount that interest rates may rise or fall over the life of the loan.

See also:   Adjustable-Rate Mortgage (ARM) | Periodic Cap