Adjustment Period
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The adjustment period is how often an adjustable-rate mortgage's rate can change after the initial fixed period ends.
What Adjustment Period means
On a 5/6 ARM, for example, the rate adjusts every six months after the first five years. The adjustment period, plus caps, governs how quickly your payment can move.
Florida example
A Florida borrower with a 7/6 ARM keeps a fixed rate for seven years, then sees the rate reset every six months based on the index plus margin, within the loan's caps.
What it is
The adjustment period is how often an adjustable-rate mortgage can change its rate after the fixed years end. A common one is once a year.
Between adjustments, your rate and payment stay steady.
Why it matters
A longer adjustment period means fewer changes and more stability. It is a key detail when comparing ARMs.
We explain how each ARM adjusts before you sign. Apply now and we will show how your payment could move.
Related program: Learn more →