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Mortgage Professor about fully indexed rate: | |||||||||||||||||||||||
Borrower Guide to Adjustable Rate Mortgages
September 29, 2001 Most borrowers who take adjustable rate mortgages (ARMs) need them to qualify for the loan they want. Because the initial rate on ARMs is usually lower than the rate on fixed rate mortgages (FRMs), these ... more... Can the Fully-Indexed Rate on an Adjustable Rate Mortgage Be Biased? June 5, 2000 ?I am considering two very similar 7% adjustable rate mortgages that adjust the rate every year. The rate on one is tied to the 11th District Cost of Funds Index (COFI) with a 3% margin. The other rate is tied to the one-year Treasury index with a 2% margin ... more... |
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fully indexed rate related definitions |
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Margin
Margin The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate. Margin is constant throughout the life of the loan. INDEX + MARGIN = FULLY INDEXED RATE Example using the 1 Year Treasury: 1 Year Treasury Index = ... more... Adjustable Rate Mortgage, ARM Adjustable Rate Mortgage (ARM) Also known as a variable rate mortgage. The interest rate on these mortgages changes periodically. Variable or adjustable loans are loans whose interest rate fluctuates over the period of the ... more... |
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More about fully indexed rate Secrets of the Option ARM Loan Option ARM Mortgage Loan - Is This Really for You? What is the 1% or 1250% Mortgage Interest Rate All About? Mortgage Loan Basics: Interest Only Loans, Pay Option ARM Mortgage Glossary - A Glossary of Mortgage Terms You Should Know Fixed-To-Adjustable-Rate-Mortgage Understanding Fixed-rate Mortgages Fixed Rate Mortgage vs. Adjustable Rate Mortgage What is a Fixed Rate Mortgage? Adjustable Rate Mortgage - How They Work?
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