What is the term for a limit on the amount payments can increase or decrease during an adjustment period in an adjustable rate mortgage?

The term for a limit on the amount payments can increase or decrease during an adjustment period in an adjustable rate mortgage is referred to as a periodic payment cap. This feature is designed to provide borrowers with a level of predictability and stability in their mortgage payments, especially in the context of fluctuating interest rates. The periodic payment cap specifies the maximum amount by which the monthly payment can increase or decrease at each adjustment period, ensuring that borrowers are not exposed to extreme changes in their payment obligations. This can help prevent payment shock, where borrowers suddenly face significantly higher payments, making it more manageable for them to budget their finances over the life of the loan.

Other terms mentioned, such as payment change date, PITI reserves, and power of attorney, serve entirely different purposes within the realm of real estate and mortgage dealings and do not relate to the fluctuation limits of mortgage payments.