I J K
Index
A number, usually a percentage, upon which future interest
rates for adjustable rate mortgages are based. Common indices
include the Cost of Funds for the Eleventh Federal District
of banks or the average rate of a one year Government Treasury
Security.
Interest Rates
Interest Rates are how Lenders make money on your loan -
they will charge a certain percentage of your outstanding
loan, which will be added to the loan balance. Interest rates
are usually quoted as the APR.
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