Adjustment Interval Law and Legal Definition
“Adjustment interval” means the time interval between changes in interest rates or monthly payment on an Adjustable Rate Mortgage. Mortgage rates are adjusted at preset intervals ranging from six months to five years, depending on the mortgage index. 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 during which there is a fixed rate of interest and payment. Generally, the first interval is followed by periodic adjustments to the interest rate throughout the remainder of the loan.