Payment caps:

Some loans do not have caps on the interest charged but rather on your monthly payment adjustment. A 2% adjustment in your rate could change your payment substantially, but if your payment can change no more than 7.5% you are better able to handle the increase. This can be a very attractive option and is a great tool, but there is a caveat: the interest that you would normally be paying on your loan but are not because of the payment cap is being added to the balance of your loan.