(1.) The time between changes in the interest rate or monthly payment on an Adjustable Rate Mortgage (ARM). The rate adjustment interval is often displayed in x/y format, where "x" is the period until the first adjustment, and "y" is the adjustment period thereafter. The rate adjustment interval and the payment adjustment interval are the same on a fully amortizing ARM, but may not be on a negative amortization ARM.

(2.) Time interval between changes in interest rates or monthly payment on an Adjustable Rate Mortgage.

Standard adjustment intervals on most ARMs are once or twice per year. On Option ARM type products, Adjustment Intervals are typically monthly.

Bankapedia's Take

This is one of those items in the loan that gets very little attention. Usually when someone is getting an ARM they only care about their initial payment. That being said adjustment intervals are not all that important. If you have 1 month, 6 month, or yearly intervals- things pretty much even out. Having longer interval periods can be a good thing if rates are going up between intervals. The opposite is true if rates are dropping and your ARM is staying the same.