[Definition] A clause that sets the minimum rate for the interest rate of an ARM loan. Loans may come with a Start Rate = Floor feature, but this is primarily for Non-Conforming (aka Sub-Prime or Program Lending) loan products. This prevents an ARM loan from ever adjusting lower than the Start Rate. An "A Paper" loan typically has either no Floor or 2% below start. [Term] 
Floor
X / Y
F u l l y I n d e x e d R a t e
M a r g i n
I n d e x
S t a r t R a t e
P e r i o d
F l o o r
P a y m e n t S h o c k
C a p