What term describes the date on which the interest rate on an adjustable-rate mortgage changes?

The term "adjustment date" specifically refers to the date on which the interest rate on an adjustable-rate mortgage (ARM) is recalculated or adjusted. This is an important concept in the context of ARMs, as borrowers need to know when their interest rate may change, which directly affects their monthly mortgage payment.

The adjustment date typically aligns with specific time intervals outlined in the mortgage terms—such as annually, semi-annually, or monthly—after an initial fixed-rate period. Understanding this term is crucial for borrowers to effectively manage their finances, as fluctuations in interest rates can significantly impact the total cost of borrowing over time.

Other terms such as "adjustment interval" may refer to the frequency with which these adjustments can occur but do not specifically denote the exact date when the rates are adjusted. "Change date" can be somewhat ambiguous, and "renewal date" typically pertains to the renewal of loans or agreements rather than the specific interest adjustment. Thus, "adjustment date" accurately captures the moment when the interest rate on the mortgage changes according to the agreed-upon conditions.