interest rate caps

An interest rate cap is a financial agreement that limits how high the interest rate on a loan or mortgage can go. If you have a variable interest rate, the payment can change with market rates. An interest rate cap protects you by setting a maximum rate, so you won't pay more than a certain percentage, even if market rates rise significantly. This provides stability and predictability in your monthly payments, helping you manage your finances better over time. It's commonly used in loans or financial products where rates can fluctuate.