| Adjustment Frequency | |
 How often the interest rate changes or resets on an adjustable-rate mortgage. Different adjustable-rate mortgages have different adjustment frequencies. Typically, the adjustment frequency is once a year, but it can be as often as once a month or as infrequent as once every five years. |
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 The lower the rate-adjustment frequency, the lower the financial risk for the borrower. To compensate for lower interest rates in the future and thus lower margins, the lender will usually expect the borrower to pay a higher initial interest rate before the first reset date. |
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 Mortgages: Fixed-Rate versus Adjustable-Rate - Both of these have advantages and disadvantages depending on your financial needs and prospects. Understanding Your Mortgage - We walk through the steps needed to secure the best loan to finance the purchase of your home. Understanding the Mortgage Payment Structure - We explain the calculation and payment process as well as the amortization schedule of home loans. Mortgages: How Much Can You Afford? - Answering this means number-crunching as well as factoring in other considerations and expenses. What is the best way to pay off my mortgage? |
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