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Interest Rate / Interest Rate Cap

The amount of money you are being charged to borrow money expressed as an annual percentage. When you make your loan payments every month, you are paying back the amount you borrowed (the principal) plus interest.
You hear about them on the news, see them in ads for cars and mortgage, and find them screaming for your attention in all of those credit card offers that land in your mailbox. But even if you're not looking to finance a major purchase, interest rates can still affect virtually every aspect of your financial life.
A limit on the amount that interest can rise or fall during a specified period of time on an adjustable-rate mortgage.

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