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Today's Mortgage Terms starting with I Index:An index is usually a widely published market rate such as LIBOR, T-Bill or 11th District Cost of Funds (COFI). Lenders use these indices to set the interest rates charged on mortgage loans. For ARM, a predetermined margin is added to the index to calculate the interest rate adjustment.Initial Rate:The rate charged for the first interval of an ARM loan.Interest:Compensation in the form of money paid for the use of money.Interest Rate Cap:Caps limit the range that the interest rate on an adjustable rate mortgage can change in an adjustment interval during the term of the loan.View all Terms |
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