Adjustment Interval

Business, Legal & Accounting Glossary

Definition: Adjustment Interval

Adjustment Interval

Full Definition of Adjustment Interval

The period between the alterations in an adjustable rate mortgage’s monthly payment or interest rate. The adjustment interval is typically shown as the ratio of X/Y, where “X” is the amount of time until the initial modification on the rate, and “Y” is the period of adjustment after the first modification is made. For instance, a 7/1 ARM occurs when the initial rate is the same for seven years, but is adjusted every year after that. On a fully amortizing ARM, the adjustment intervals for both rate and payment are the same; this may not be the case with a negative amortization ARM.

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Modern Language Association (MLA):
Adjustment Interval. Payroll & Accounting Heaven Ltd.
December 02, 2021
Chicago Manual of Style (CMS):
Adjustment Interval. Payroll & Accounting Heaven Ltd. (accessed: December 02, 2021).
American Psychological Association (APA):
Adjustment Interval. Retrieved December 02, 2021
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Definition Sources

Definitions for Adjustment Interval are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.