Interest rate adjustment period
Definition
The frequency of rate adjustments on an ARM after the initial rate period is over. The rate adjustment period is sometimes but not always the same as the initial rate period. As an example, a 3/3 ARM is one in which both periods are 3 years while a 3/1 ARM has an initial rate period of 3 years after which the rate adjusts every year. See Information to Evaluate an Adjustable Rate Mortgage.
Related Terms Other terms related to 'Interest rate adjustment period' starting with the letter 'I' Interest rate ceiling, Interest rate, Interest rate decrease cap, Indexed ARM, Interest cost Browse by Letter » 1 4 A B C D E F G H I J L M N O P Q R S T U V W Y | 