Most adjustable-rate mortgages have rate caps to protect North Florida homebuyers from dramatic rises in the interest rate. These rates determine how much the interest rate may rise between adjustment periods as well as how much the rate may rise or fall over the loan period. For instance, the North Florida loan may have a 2% periodic cap, and a 6% lifetime cap. This means that the rate cannot rise more than 2% during an adjustment period, and no more than 6% over the life of the loan. Almost always, the lifetime cap applied to the calculated interest rate and not the introductory teaser rate.