Interest Rate Adjustment Period

Interest Rate Adjustment Period

The frequency of rate adjustments on an ARM after the initial rate period is over.

The rate adjustment period is sometimes but not always the same as the initial rate period. As an example, using common terminology, a 3/3 ARM is one in which both periods are three years while a 3/1 ARM has an initial rate period of three years after which the rate adjusts every year. See Adjustable Rate Mortgage (ARM)/How the Interest Rate on an ARM Is Determined.

References in periodicals archive ?
The bonds are subject to mandatory tender: (1) upon conversion of the interest rate mode; (2) upon substitution of the LOC; (3) five business days prior to expiration of the LOC; (4) within five business days following receipt of notice from the LOC Bank that the LOC will not be reinstated following an interest draw or that an event of default under the reimbursement agreement has occurred; and (5) in the extended mode, on the first day of each interest rate adjustment period.
The bonds are subject to mandatory tender: (1) upon conversion of the interest rate mode; (2) upon substitution of the LOC; (3) five business days prior to expiration of the LOC; (4) five business days following the trustee's receipt of notice from the LOC Bank that the LOC will not be reinstated following an interest draw or that an event of default under the reimbursement agreement has occurred; and (5) in the VIP and extended mode, on the first day of the next succeeding interest rate adjustment period.
The key benefits of a SBA PLP loan from UMB include: up to 90% loan-to-value, fully amortized terms on real estate for up to 25 years and 10 years on equipment, no balloon payments and flexible interest rate adjustment periods for 1, 3 or 5 years.