Let's say an ARM has a two - percentage - point periodic cap, a six - point lifetime cap and a one - year adjustment period. (humbledollar.com)
For example, a 1 percent periodic cap on a 3/1 ARM would mean that the interest rate could not increase or decrease more than 1 percent after each year. (sapling.com)
Some come with a periodic cap limiting how much your rate can increase during each period. (credible.com)