If one of the terms of an ARM read,interest is capped at 2%/5%,what would that mean?

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When a term of an ARM is "capped," it means that there is a limit to how much the interest rate can increase or decrease during a specific period, such as a year or the life of the loan. In this case, the ARM has a 2% annual cap rate, which means that the interest rate can increase or decrease by no more than 2% each year. Additionally, it has a 5% lifetime cap rate, meaning that the interest rate cannot exceed 5% above the initial rate throughout the life of the loan.

If One of the Terms of an ARM Read,interest Is