Adjustment Frequency

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Adjustment Frequency

In adjustable-rate mortgages, the rate at which changes to a mortgage's interest rate occur. Usually, the interest rate changes once a year, but some mortgages change rates as often as once a month or as seldom as every five years. The higher the adjustment frequency, the higher the financial risk for the homeowner. For example, if the adjustment frequency is once a month, a homeowner could find his/her mortgage payment increasing every month for five months before it goes down again. This ties up more of the homeowner's income, and increases the likelihood of default.
References in periodicals archive ?
Upon discovering some obvious shortcomings in the retail mobile trade-in industry, they created Safetrade to deliver a simple service for retailers: high-value trade-ins on the most products with the lowest adjustment rates.
About Phobio: Phobio's flagship product, Safetrade, offers high-value phone trade through its proprietary software and strong support for clients across three continents, boasting high trade-in value, low adjustment rates, simple software, effective training and 24-7 customer support.
We verify that in the last stage (final model), the adjustment rates CFI (Comparative Fit Index) and NNFI ( Bentler-Bonet Nonnormed Fit Index) are superior to.
As the prices last year were dated prior to the disaster, the agency released adjustment rates later as a tax relief measure for stricken prefectures.
FITCHBURG - Unitil's natural gas customers will see a decrease in gas rates, after the state Department of Public Utilities approved a decrease in its Cost of Gas Adjustment rates.
Table III reports estimation results, including short-run price elasticities and estimated adjustment rates for four versions of the model differentiated by the exclusion of variables.
The results are presented in Table 2 along with the other durable categories, and associated elasticities, depreciation rates, and adjustment rates are in Table 3.
Lower new issue and adjustment rates are also available for select ages, occupations and geographical regions based on experience in these areas.
Cost of gas adjustment rates are adjusted periodically to reflect changes in wholesale supply costs.
As the latest assessment of ''roadside land prices,'' which serve as a basis for tax calculations, is dated prior to the massive March 11 earthquake and tsunami, the agency plans to decide and announce by November adjustment rates for nine designated stricken prefectures, taking into account disaster-induced falls in their land prices.
Unitil Corporation (AMEX: UTL) announced today that its subsidiary Fitchburg Gas and Electric Light Company (FG&E) filed a request to decrease its Cost of Gas Adjustment rates with the Massachusetts Department of Telecommunications and Energy (MDTE).