2. A cap of 2-5 with an Adjustable Rate Mortgage means:

a. The rate can change by 3 percent per year

b. The loan balance will increase by 3 percent overall

c. The monthly payment can increase by a maximum amount of 2 percent per year but not more than 5 percent overall

d. The monthly payment can increase by a maximum amount of 5 percent per year but the loan balance must increase by 2 percent every year the loan is outstanding