A limit on the amount that the payments can increase or decrease over the life of an adjustable rate mortgage (ARM).
The maximum increase or decrease in the amount of each periodic payment allowable over the life of an adjustable or variable rate mortgage.
A predetermined maximum amount that payment amounts may change over the life of an adjustable rate mortgage.
On an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the term of the loan.