Adjustment Interval

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Adjustment Interval

In 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 Interval

On 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.

References in periodicals archive ?
However, adjusting the panels manually eliminates the extra cost and yields better results when the adjustment intervals are optimized for local conditions, the researchers say.
This percentage drops to below 23% when the discount factor is restricted to reasonable values, and under these restrictions, industries accounting for at least 36% of all sales in the industries we analyze have estimated price adjustment intervals of less than 2 quarters.
For 59 industries accounting for about 8% of all industries' sales in 2004, the price adjustment intervals implied by the unrestricted non-hybrid model's estimates were negative, implying an obvious mismatch of these industries with the structural model.
For the estimations with [beta] preset at .95, the fit of the model for 84 industries was very poor and yielded negative estimated price adjustment intervals. The remaining 178 industries accounted for 86% of the total 2004 sales of the original 262 industries.
In this instance, the Gali-Gertler procedure failed to produce good fits for 80 industries and thereby yielded negative estimated price adjustment intervals. Naturally, imposing the [beta] = .99 restriction slightly reduced both the unweighted and the weighted average estimated price adjustment intervals across all industries to 3.9 and 2.8 quarters, respectively.
The only broad industry grouping for which estimated price adjustment intervals are consistently relatively longer than those of other categories is the transportation (48) category.
The Elite 3200s are among the best Bushnell offers; all have RainGuard lenses, quarter-minute adjustment intervals, fast-focus eyepieces, and they are fully waterproof/fogproof and carry a lifetime warranty.
This makes for long adjustment intervals, since the abrasion limit is not prematurely reached due to non-infinitely variable setting and play movement
Chapter 6, on inflation, clearly presents the monetarism-structuralism debate and five factors in the inflation process: seignorage, balance-of-payments crises, dollarization, capacity constraints and supply shocks, and indexation and adjustment intervals. The discussion should include more on the inflationary process in a single country.
Adjustment intervals typically range from one month to five years.
Another concern among servicers is the higher unit-servicing costs anticipated for ARMs, especially those with negative amortization, short adjustment intervals and the relatively few that have adjustable servicing fees.
The main reason good-quality scopes "fail" in normal use (reticles break or turn, lenses become loose, zoom mechanisms bind, adjustment intervals become irregular) is because the tube is stressed--slightly "bent"--by being held tightly by misaligned rings.