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News Stories - Elizabethton StarMONTROSE, Calif. (AP) -- Bruce and Sylvia Pardo started the new year in 2006 with all signs pointing to a bright future -- an upcoming marriage, a combined income of about $150,000, half-million-dollar home on a quiet cul-de-sac and a beloved dog ...
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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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