Payment Change Date

The date on which the monthly payment changes for an ARM/Graduated Payment ARM; the effective date that a new amount is due from a borrower. It must fall in the month immediately preceding an interest rate change date (unless the ARM plan calls for the payments to change more frequently than the interest rate). For adjustable-rate mortgages (ARMs) the payment change date is each date, established in the note, on which the monthly payment could change.

The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.