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Broken promises, broken homes - Chicago Sun-TimesTony Rezko's company got more than $100 million in loans to renovate Chicago apartment buildings for poor people. And the money kept coming even as the buildings fell apart. They had applied for the loan just six days after Richard M. Daley won his ...
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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.
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