What is an adjustable rate mortgage (ARM) adjustment period?

An adjustable rate mortgage (ARM) adjustment period refers to the time between changes in the interest rate of an ARM loan. In North Dakota, the adjustment period is typically one year, but this can vary from loan to loan. During this time, the interest rate of an ARM loan remains fixed at the same rate, but at the end of the adjustment period, the interest rate may change. This change is determined by a variety of factors, including the amount of time elapsed since the last adjustment period, the market interest rate, and other factors specific to the loan. For example, if the market interest rate has gone up since the last adjustment period, the interest rate of the ARM loan will likely go up as well. Furthermore, the new interest rate will remain in effect until the next adjustment period. This cycle will continue over the life of the ARM loan.

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