| 释义 |
Interest Rate Floor Interest rate floorAn interest rate agreement in which payments are made when the reference rate falls below the strike rate. Related: Interest rate cap.Interest Rate FloorThe minimum interest rate that may be charged on a contract or agreement. For example, an adjustable-rate mortgage may have an interest rate floor stating that the rate will not go below 3.5% even if the formula used to calculate the interest rate would have it do so. An interest rate floor reduces the risk to the bank or other party receiving the interest. See also: Interest Rate Ceiling.Interest Rate FloorThe lowest interest rate possible under an ARM contract. Floors are less common than ceilings. See Adjustable Rate Mortgage (ARM)/How the Interest Rate on an ARM Is Determined. |