Margins – What are they?
August 12th, 2007 by John Thomas
Margins
On an adjustable rate loan, the amount a lender adds to the index in order to determine the mortgage interest rate at each adjustment period. For example, if the index is at 5.0, and the margin is 1.5, the fully indexed interest rate is 6.5%. The margin is normally fixed for the life of the loan.
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