The Absolute Lifetime Cap Type is the maximum note rate over the life of the loan. For example, if the Absolute Cap is set to 10 the note rate can never exceed 10%.
The Relative Lifetime Cap Type is the maximum the rate can adjust relative to the starting rate. For example, if the start rate is 3% and the relative rate is set to 5, then the note rate will be capped at 8% over the life of the loan.
NOTE: In Optimal Blue, users can only configure an ARM Cap Type as either Absolute or Relative, not both.