7/1 Arm StructureMy lender is quoting the following to me as a 7/1 ARM option- Initial Rate : 3.25% (Index : 2.25% + Margin : 0.5%)- He says the rate will be FLAT for 7 years given the 7/1 ARM Structure- After which the rate could change every year and go up by 2% (Cap) but cannot cross 2% for the next 5 years ( Year 8- 12) (i.e. Worst case the rate will be 4.25%= 2.25% base + 2% cap during year 8 - 12 )- After year 13 - it can go up / down but there is a MAX of 8.25% (5% above the index) Question : Can there be a 7/1 ARM - with such structure that protects you in year 8 - 12 from rates to cross more than 4.25% ??I tried reading a lot but could not find this info on ARM and want to understand if there is some more validation or cross checking that I need to do. Is this a common practice ? June 15 2014 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.