- The scheduled time period in which an adjustable-rate mortgage changes.
scheduled period, adjustment frequency
Related Terms and Acronyms
- Adjustable-Rate Mortgage (ARM) — Acronym,
➥ A type of variable rate mortgage product.
- A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.
- Adjustment Period — Definition,
- The time between changes in the interest rate in an adjustable-rate mortgage.
- Interest Rate Cap — Definition,
- A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.
- Payment Adjustment Period — Definition,
- The time period where payments on an adjustable-rate mortgage (ARM) may fluctuate.
- Periodic Rate Cap — Definition,
- In an adjustable-rate mortgage (ARM), it limits how much an interest rate can increase or decrease from one adjustment period to the next.