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Limits how much the interest rate or the monthly payment can increase, either at each adjustment or during the life of the mortgage. Payment caps don’t limit the amount of interest the lender is earning and may cause negative amortization.

Merriam-Webster Online Dictionary
cap (noun)
1.
a) a head covering especially with a visor and no brim
b) a distinctive head covering emblematic of a position or office as
(1) a cardinal's biretta
(2) - mortarboard
2.
a natural cover or top as
a) an overlying rock layer that is usually hard to penetrate
b) (1) - pileus
(2) - calyptra
c) the top of a bird's head or a patch of distinctively colored feathers in this area
3.
a) something that serves as a cover or protection especially for a tip, knob, or end - a bottle cap
b) a fitting for closing the end of a tube (as a water pipe or electric conduit)
c) British - cervical cap
d) an artificial crown for a tooth
4.
an overlaying or covering structure
5.
a paper or metal container holding an explosive charge (as for a toy pistol)
6.
an upper limit (as on expenditures) - ceiling
7.
the symbol ∩ indicating the intersection of two sets - compare cup 9
8.
a cluster of molecules or chemical groups bound to one end or a region of a cell, virus, or molecule
cap (verb)
transitive verb
1.
a) to provide or protect with a cap
b) to give a cap to as a symbol of honor, rank, or achievement
2.
to form a cap over - crown the mountains were capped with mist John Buchan
3.
a) to follow with something more noticeable or more significant - outdo
b) to bring to a climax or conclusion - cap off the show with a song
4.
to form a chemical cap on
5.
to prevent from growing or spreading set an upper limit on - cap oil prices
6.
intransitive verb
to supply (a tooth) with an artificial crown to form or produce a chemical cap
cap (noun)
a small amount of an illegal or legally regulated drug , especially a small amount of a drug enclosed in a capsule
cap (noun)
- capitalization
CAP (abbreviation)
1.
Civil Air Patrol
2.
combat air patrol
cap (abbreviation)
1.
capacity
2.
capital
3.
capitalize; capitalized
Merriam-Webster Online Thesaurus
cap (noun)
a small mass containing medicine to be taken orally
SYNONYMS:
cap, capsule, lozenge, tablet
RELATED WORDS:
cure, drug, medication, medicinal, pharmaceutical, physic, remedy, specific; miracle drug, wonder drug; potion, preparation; dosage, dose; drop, gelcap; bolus, pilule
cap (noun)
1.
a covering for the head usually having a shaped crown
SYNONYMS:
cap, chapeau, headdress, headgear, headpiece, lid
RELATED WORDS:
baseball cap, beret, billycock [], biretta, boater, bonnet, bowler, calotte, capuche, casque, castor, cloche, cocked hat, cowboy hat, cowl, derby, fedora, fez, garrison cap, hard hat, helm, helmet, high hat, homburg, hood, kepi ( képi), kufi, leghorn, miter ( mitre), nightcap, opera hat, overseas cap, panama, picture hat, pillbox, plug hat, porkpie hat, service cap, shako, silk hat, skimmer, skullcap, sombrero, sou'wester, Stetson, stocking cap, stovepipe, sunbonnet, tam, tam-o'-shanter, ten-gallon hat, top hat, topper, toque, tricorne ( tricorn), turban, zucchetto; warbonnet
cap (noun)
2.
a piece placed over an open container to hold in, protect, or conceal its contents
SYNONYMS:
cap, lid, top
RELATED WORDS:
dome, hood, roof; capsule, case, casing, covering, housing, jacket, sheath, shell
cap (noun)
3.
a real or imaginary point beyond which a person or thing cannot go
SYNONYMS:
bound, boundary, cap, ceiling, confines, end, extent, limitation, line, termination
RELATED WORDS:
extremity, fag end, terminus; border, brim, edge, margin, rim, verge; outside; bar, barrier, fence, hedge, restraint, stop, wall
cap (verb)
to set bounds or an upper limit for
SYNONYMS:
cap, circumscribe, confine, hold down, restrict
RELATED WORDS:
bar, block, hamper, hinder, impede, obstruct; constrict, contract, lessen, narrow, pinch, squeeze, tighten; quell, repress, suppress; number; modify, qualify
NEAR ANTONYMS:
broaden, expand, widen; overextend, overreach
exceed
cap (verb)
to bring to a triumphant conclusion
SYNONYMS:
cap (off), climax, culminate
RELATED WORDS:
complete, conclude, finish, round (off out), terminate, wrap up
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