A published interest rate not controlled by the lender
to which the interest rate on an Adjustable Rate Mortgage
(ARM) is tied. The index and the interest rate linked
to it may increase or decrease.
Consideration in the form of money paid for the use of
money, usually expressed as an annual percentage. Also,
a right, share, or title in property.
A term loan arrangement calling for payments of interest
only, not to include any amount for principal.
The percentage of an amount of money that's paid for its
use over a specified time period.
Rate Swap -
A transaction between two parties, in which each agrees
to exchange payments tied to different interest rates
or indices for a specified period of time.
A mortgage loan with a stated maturity at the time of
purchase that it is equal to or less than 20 years.