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

An adjustable rate mortgage (ARM) adjustment period is the period of time in between when the interest rate on a mortgage changes. This period generally lasts for one year or more and is the time when the lender reviews the interest rate and adjusts it based on current market conditions and the borrower’s creditworthiness. For ARM adjustments in Virginia, the adjustment period timeline generally follows the same rules as other states. In Virginia, the ARM adjustment period is normally fixed for a certain duration (e.g. one year) and then adjusts according to a predetermined schedule or index. Generally, this adjustment period is set to occur every year, but may be more or less frequent, depending on the terms of the loan. Some ARM loans also have a cap or limit in place, limiting how much the interest rate can increase from one adjustment period to the next. Capping helps to protect the borrower from large swings in mortgage rates that could have an adverse impact on their ability to make their payments. In summary, an adjustable-rate mortgage adjustment period is the period of time in between when the interest rate on the loan adjusts according to current market conditions. These adjustment periods are generally fixed for a certain duration and sometimes have caps or limits in place to protect the borrower from large swings in mortgage rates.

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

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