Mortgage Glossary
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.
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