Interest rates required by a variable interest rate mortgage (VIRM) typically are capped (i.e., limited) as to how much they can be adjusted at any one time.

Question

Interest rates required by a variable interest rate mortgage (VIRM) typically are capped (i.e., limited) as to how much they can be adjusted at any one time. ​

Quizplus · Accepted Answer

Variable interest rate mortgages often have caps that limit the amount by which the interest rate can be adjusted during each adjustment period, as well as over the life of the loan, to protect borrowers from drastic increases in payments.

Interest Rates Required by a Variable Interest Rate Mortgage (VIRM)