Interest Rate Ceiling
The absolute maximum rate of interest that a financial institution can charge for an adjustable rate mortgage or loan.
Investopedia Commentary
This is regulated by the government. When a borrower is charged interest above the established legal rate they are usually dealing with a loan shark.
Related Links
Forces Behind Interest Rates
How the Distinction Between APR and APY Affects You
See also: Adjustable-Rate Mortgage, Ceiling, Fixed Interest Rate Mortgage, Interest Rate, Interest Sensitive Stock, Loan, Loan Sharking, Mortgage, Variable Interest Rate Mortgage