What term describes the date when a new monthly payment amount takes effect on an ARM?

The term that describes the date when a new monthly payment amount takes effect on an Adjustable Rate Mortgage (ARM) is the Payment Change Date. This date is significant in the context of ARMs because the interest rate on the loan is typically adjusted periodically, which causes a change in the monthly payment.

When the Payment Change Date arrives, the lender recalculates the borrower's monthly payment based on the new interest rate, which can lead to either an increase or decrease in the payment amount. Understanding this term is crucial for both lenders and borrowers, as it impacts financial planning and budgeting.

The other terms, while related to the mortgage process, do not specifically identify the date on which the new monthly payment takes effect. The Adjustment Date refers to the date the interest rate is adjusted, but it does not specifically denote when the revised payment amount is applied. The Effective Date generally speaks to when terms of a mortgage become in force, rather than the transition of payment amounts. Lastly, the Repayment Date is not a standard term used to refer to payment adjustments within ARMs. Thus, the Payment Change Date is the most accurate term for this context.