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News about Mortgages:
Got questions about today's economy? - Homer NewsIs it a good time or a bad time to build a house? What kind of estate planning is available? Should you take all your money out of the bank and put it under your mattress? Everywhere she turns, those are the concerns Debra Leisek, broker at Bay ...
Fiscal health questions answered - Homer NewsAs the annual health fair was wrapping up at Homer High School Saturday, a first-time "Fiscal Wellness Fair" was in full swing at Bay Realty. The fair was organized by Debra Leisek, broker, and included experts Leisek pulled together to address ...
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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