Adjustment Period
Direct definition
How often an ARM's interest rate can change after its initial fixed period.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
On an adjustable-rate mortgage, the adjustment period is the interval between rate resets — commonly every six months or every year. It's the second number in labels like 5/6 or 7/1.
Why it matters
Shorter adjustment periods mean your rate — and payment — can move more frequently, which affects payment stability.
Where you may see it
- Mortgage note
- Loan Estimate
- ARM disclosure
A real-world example
A 7/6 ARM has a seven-year fixed period, then the rate can adjust every six months.
Educational and illustrative only
A common misunderstanding
It doesn't describe how long your rate is fixed at the start — that's the initial rate period; this is how often it can change afterward.
Ask Vabasso AI
This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026