What is the 'change date' in a mortgage loan?

The 'change date' in a mortgage loan refers specifically to the date when the interest rate on the loan is recalculated or adjusted, particularly in adjustable-rate mortgages (ARMs). Generally, with an ARM, the interest rate is fixed for an initial period and then changes at specified intervals based on a benchmark index. This change date is crucial as it directly impacts the amount of the borrower’s monthly payments and the overall cost of the loan over time. Understanding the change date is essential for borrowers to anticipate fluctuations in their payment obligations and manage their finances accordingly.

Regarding the other options, the date the borrower signs the loan agreement marks the official start of the loan but does not relate to interest adjustments. The due date for payments each month is not tied to interest changes but instead to the loan's payment schedule. Lastly, the date the loan is fully paid off signifies the end of the loan term, which has no connection to interest rate adjustments.