Where would the reset period for an Adjustable Rate Mortgage (ARM) be indicated?

The reset period for an Adjustable Rate Mortgage (ARM) is specified within the loan agreement documentation, such as the note, TILA disclosure, loan estimate, and closing disclosure. These documents clearly outline the terms of the mortgage, including interest rate adjustments, how often these adjustments occur, and the basis for those adjustments.

The note is a legal document that contains the terms and conditions of the loan, and it typically details the specific schedule for interest rate resets. The TILA disclosure provides crucial information about the costs of the credit and the terms of the loan, including the frequency of interest rate changes. Meanwhile, the loan estimate and closing disclosure include comprehensive summaries of the loan, allowing the borrower to fully understand the terms before finalizing the agreement.

Understanding where to find the reset period is essential for borrowers in planning their financial future, as it dictates how their monthly payment obligations may change over time. In contrast, the other options do not typically contain pertinent information about the reset period specific to ARMs, which makes them less relevant in this context.