Adjustment periods are set at month-to-month, semi-annual, annual, and multi-annual intervals. For example, a 5/6 ARM has its interest rate locked at an initial rate for 5 years and an adjustment period, after the 5 year initial period, of 6 months. A 15/15 ARM allows one change during the life of an ARM. After an initial rate for 15 years, the mortgagor assumes a second interest rate for the remaining 15 years.
[Last updated in June of 2021 by the Wex Definitions Team]