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Interest Cap |
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Interest CapThe maximum interest rate increase of an Adjustable Mortgage Loan. For example: a 120% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%.Interest Cap Similar MatchesForward interest rateForward interest rateInterest rate fixed today on a loan to be made at some future date. Deferred interest bondDeferred interest bondA bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond. Simple interestSimple interestInterest calculated as a simple percentage of the original principal amount. Compare to compound interest. Earnings before interest after taxes (EBIAT)Earnings before interest after taxes (EBIAT)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest plus cash income taxes. Equivalent to EBIT minus cash taxes. Interest receivableInterest receivableAn accounting term which refers to the amount of income a company receives in the form of interest payments on its cash. The figure for interest receivable can be found in the balance sheet. Its flip side is 'interest payable' - the amount a company pays on its borrowings. Further SuggestionsUnearned interestShort interest Mortgage interest deduction Imputed interest Interest in Arrears Earnings before interest, taxes, and depreciation (EBITD) Interest rate floor mortgage interest deduction Export financing interest Nominal interest rate bond interest yield Assumed interest rate Interest sensitive stock Covered interest arbitrage Matured noninterest bearing debt Effective annual interest rate Rate of interest Interest rate futures contract Variable interest rate interest rate swap Covered interest rate prevailing interest rate Cash flow after interest and taxes permanent interest bearing shares Variable Interest Rate |
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