Initial Rate Period
Direct definition
The length of time an ARM's introductory rate is fixed before the first adjustment.
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
This is the first number in a label like 5/6 or 7/6 — the fixed years before the rate begins to adjust.
Why it matters
It defines how long you have payment certainty before the ARM behavior begins.
Where you may see it
- ARM disclosure
- Mortgage note
A real-world example
A 7/6 ARM has a seven-year initial rate period before the first six-month adjustment.
Educational and illustrative only
A common misunderstanding
The initial rate period doesn't mean the loan term ends then — it's only when the fixed introductory rate ends and adjustments can begin.
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