Business and Personal Finance Dictionary

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• PAYMENT CAP
  
  Some Adjustable Rate Mortgages include payment caps that limit your monthly payment increase at the time of each adjustment. Usually, this increase is equal to a percentage of the previous payment. In other words, with a 7.5 percent payment cap, a payment of $100 could increase to no more than $107.50 in the first adjustment period, and to no more than $115.56 in the second.
  
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