Navigation:  Loan Screens > Account Information Screen Group > ARM Information Screen > ARM Detail tab > Periodic Rate Caps field group > Use Rate Cap

Entry: User, checkbox

F/M: Yes

Mnemonic: LNRCAP

Screen: Loans > Account Information > ARM Information > ARM Detail tab

 

The periodic rate cap sets a limit on the interest rate for the loan. The interest rate is not allowed to adjust above or below this cap. For example, a loan that guarantees the rate will increase no more than 2% per year has a periodic rate cap.

 

This checkbox defaults to unchecked. Place a checkmark in this field if a rate cap is to be used.

 

The fields needed in order for the rate cap to function properly are as follows:

 

Maximum Points Up

Maximum Points Down

Start of Accrual Period

Rate at Period Start

Length of Rate Cap Period

Rate Change Minimum