The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage. The number of percentage points a lender adds to the index to calculate the ARM interest rate at each adjustment. Fifteen year loans are also usually available. If you can afford a somewhat higher monthly payment, then you should consider the fifteen year loan. Forty year term is sometimes available.
Points are a fee paid to obtain a loan, or to lower the interest rate charged.
On a purchase, points are prepaid interest. I've seen rate sheets showing various combinations of fixed and adjustable, points, and rates. Loan programs can be confusing. If you think you may need to move in 2-5 years, the lower rates of an adjustable loan would be attractive. Also consider the no-point adjustable.