Is an adjustable rate mortgage right for you? It depends on your personal scenario is and if you can stomach having your rate change. The 1/1/5 caps are certainly more tolerable than the 5/2/5 caps that most conventional ARMS tend ot have. At any rate, it's good to know what your mortgage options are. Caps Prevent Drastic Rate Changes. To maintain some predictability and stability, hybrid ARMs are capped in three ways. A 5/1 ARM with 5/2/5 caps, for example, means that after the first five years of the loan, the rate can't increase or decrease by more than 5 percent above or below the introductory rate. Apr 18, · 2/2/5: (Note: Caps can be different depending on the term of the loan. For example, you may find that a 7-year ARM has a 5/2/5 cap structure). But for this example, the first two means that the most a rate can change is 2% the year after the fixed period expires.