Adjustable-rate mortgages North Florida often have payment camps. A payment cap differs from a rate cap by placing a ceiling on how much your payment may rise during an adjustment period. This may sound like a good thing, but it can sometimes lead to much difficulty. For example, if the interest rate goes up during an adjustment period, the additional unpaid interest on the loan payment may surpass the amount allowed by the payment cap. This leads to negative amortization, simply meaning that the balance of the Jacksonville Florida loan is actually growing, even though the homeowner is still making the minimum monthly payment. Many lenders restrict the amount of negative amortization that may occur before the loan must be regrouped, but speak with your Jax Florida lender to determine their policies and procedures.