An Interval Adjustment Cap refers to a limit on the amount a loan's interest rate can increase or decrease during each adjustment interval on an adjustable-rate mortgage (ARM). This cap helps borrowers predict and manage their mortgage payments by restricting rate fluctuation within set periods.
Mortgage modification refers to the process of making permanent changes to the terms of an existing loan agreement between a borrower and a lender. This is intended to make the loan more affordable for the borrower to avoid foreclosure.
Recasting is the process of adjusting a loan arrangement, often to prevent default, by extending maturity or changing the interest rate.
