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News about Mortgages:
Property Transfers - Rolling Meadows ReviewProperty TransfersRolling Meadows Review, IL - Nov 13, 20081844 Oriole Drive, Saxon Mortgage Services Inc. to Nikola S. Pervan, $318000, Sept. 18. • 591 Clearmont Drive, Anthony H. Conter to Agnes Indurante, ...
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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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