Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Cap

FTC

Updated 10-31-2026

Cap

For an adjustable-rate mortgage (ARM), a limitation on the amount the interest rate or mortgage payments may increase or decrease. See also "Lifetime Payment Cap," "Lifetime Rate Cap," "Pe-riodic Payment Cap," and "Periodic Rate Cap."

FTC Real Estate Terms

FTC · p. 3

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