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adjustment interval

The period between the alterations in an adjustable rate mortgage's monthly payment or interest rate. The adjustment interval is typically shown as the ratio of X/Y, where "X" is the amount of time until the initial modification on the rate, and "Y" is the period of adjustment after the first modification is made. For instance, a 7/1 ARM occurs when the initial rate is the same for seven years, but is adjusted every year after that. On a fully amortizing ARM, the adjustment intervals for both rate and payment are the same; this may not be the case with a negative amortization ARM.

Related information about adjustment interval:
  1. Adjustment Interval Definition | Investopedia
    The amount of time between interest rate changes to an adjustable rate mortgage (ARM). Most ARMs have two adjustment intervals. The first interval is typically ...
     
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  3. Adjustment Interval - Financial Dictionary - The Free Dictionary
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  5. Adjustment Interval - LendingTree
    The adjustment interval is the time between changes in the interest rate and/or monthly payment for an adjustable rate mortgage, usually one, three or five years .
     
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  8. ARMs - Home Loan From California Mortgage Company – Firstcal
    Sometimes the first adjustment interval is longer or shorter than the following intervals. ... This is the rate that you pay until the end of the first adjustment interval.