The day when the interest rate changes on an adjustable rate mortgage (ARM)
After an initial period where an ARM's interest rate remains the same, the rate changes on the adjustment date to reflect the current market rate. It will continue to adjust either monthly, semi-annually or annually over the life of the loan. For example, the first adjustment date for a 10/1 ARM is after 10 years.
See: Adjustable rate mortgage
Mortgage definitions and Real Estate Terms, Consolidating loans, refinancing mortgages and reverse mortgage process available to anyone. This consumer information site contains several tools and guides to aid in purchasing or refinancing a home or commercial property.
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Friday, April 14, 2006
