| 释义 |
Adjustment Interval Adjustment IntervalIn adjustable-rate mortgages and variable-rate mortgages, the time between two changes in the interest rate of the mortgage or loan. Often, the adjustment interval lasts one year, but some loans change rates as often as once a month or as seldom as every five years. The shorter the adjustment interval, the higher the financial risk is for the homeowner. For example, if the adjustment interval for a mortgage is one month, a homeowner's mortgage payment could increase every month for five months or longer before it decreases again. This ties up more of the homeowner's income, and increases the likelihood of default.Adjustment IntervalOn an ARM, the time between changes in the interest rate or monthly payment. These are the same on a fully amortizing ARM, but may not be on a negative amortization ARM. See Adjustable Rate Mortgage. |