Last reviewed 10-31-2026Short-Sale.com Editorialglossary
Initial Cap
FreddieMac
Updated 10-31-2026
Initial Cap
For ARMs, the Initial Cap is the maximum increase or decrease in the Note Rate on the first Interest Change Date, expressed in percentage points. The related ULDD Data Point names are Per Change Maximum Decrease Rate Percent and Per Change Maximum Increase Rate Percent.
FreddieMac Glossary
FreddieMac · p. 21
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