Rate cap
A limit on how much an adjustable-rate mortgage's interest rate can change at one adjustment or over the life of the loan.
Most ARMs have three caps: an initial adjustment cap for the first change, a subsequent cap for each change after that, and a lifetime cap. They are often written as three numbers, like 2/2/5.
Two ARMs with the same starting rate can have different caps, so compare them when you shop.
Example
With 2/2/5 caps on a 5.75% start, the rate could be 7.75% after the first change and never above 10.75%.