DEFINITION of 'Adjustment Interval'
The amount of time between interest rate changes to an adjustable rate mortgage (ARM). Most ARMs have two adjustment intervals. The first interval is typically longer (usually 3,5,7 or 10 years) during which there is a fixed rate of interest and payment. This initial interval is followed by periodic adjustments to the interest rate (usually every 6 months or year) throughout the remainder of the loan.
BREAKING DOWN 'Adjustment Interval'
An example of this would be a 3/1 ARM. The first number denotes the initial period of time in which the interest rate and payment remain fixed followed by the second number denoting the subsequent adjustment intervals. In this example, the interest rate and payment remains the same for the first three years of the loan, after which it can adjust every year.

Confidence Interval
A term used in inferential statistics that measures the probability ... 
Periodic Interest Rate Cap
A part of an interest rate cap structure on loans and mortgages. ... 
Cap
The highest point to which an adjustable rate mortgage (ARM) ... 
Indexed ARM
An adjustablerate mortgage on which the interest rate adjusts ... 
Initial Interest Rate Cap
The maximum amount the interest rate on an adjustablerate loan ... 
Hybrid ARM
A hybrid adjustablerate mortgage blends the characteristics ...

Professionals
Mortgage Financing
Mortgage Financing 
Credit & Loans
Adjustable Rate Mortgage: What Happens When Interest Rates Go Up
Adjustable rate mortgages can save borrowers money, but they can't go into it blind. In order to benefit from an ARM, you have to understand how it works. 
Home & Auto
Adjustable Rate Mortgages
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Home & Auto
Adjustable Rate Mortgages (ARMs)
The most common types of ARMs are a one, five or sevenyear ARM. 
Credit & Loans
Mortgages: FixedRate Versus AdjustableRate
Both of these have advantages and disadvantages depending on your financial needs and prospects. 
Home & Auto
Mortgages: Fixed Rate Versus Adjustable Rate
Choosing the right mortgage can help homebuyers avoid costly mistakes. Learn the difference between fixed and adjustablerate loans. 
Home & Auto
Option ARMs: American Dream Or Mortgage Nightmare?
Option adjustable rate mortgages could make or break your homebuying experience. 
Options & Futures
This ARM Has Teeth
Find out how to avoid getting bitten when your mortgage rate resets. 
Credit & Loans
How Interest Rates Work On A Mortgage
A stepbystep explanation of the interest calculations, mortgage types, and how the loan is eventually "retired" – which means paid off. 
Charts & Patterns
Advantages Of DataBased Intraday Charts
We take a look at these chart intervals and how we can use them to our advantage.

What is the difference between a 2/28 and a 3/27 ARM?
An adjustable rate mortgage (ARM) is a type of mortgage that has a fixed interest rate for a certain time period at the beginning ... Read Answer >> 
Is an adjustable rate mortgage (ARM) safe?
Learn why an adjustable rate mortgage (ARM) can be a safe option as long as the borrower is familiar with the underlying ... Read Answer >> 
What's the difference between a confidence level and a confidence interval in Value ...
Learn about the value at risk, how confidence intervals and confidence levels are used to interpret the value at risk and ... Read Answer >> 
Which is better, a fixed or variable rate loan?
A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ... Read Answer >> 
How do you make working capital adjustments in transfer pricing?
Understand how working capital adjustments are applicable to transfer pricing. Learn about the arm's length standard and ... Read Answer >> 
Why is the Arms Index (TRIN) important for traders?
Learn more about the Arms Index, or TRIN, and how traders and chartists use the Arms to measure market volatility and trading ... Read Answer >>