|
Margin
A number, expressed as a percentage, that is added to a mortgage's index to determine the rate the borrower pays on the note.
An index can be a six-month CD at 4 percent and the margin can be 2 percent. The interest rate the borrower pays is 4 + 2, or 6 percent.
A fully indexed rate is the index plus the margin.
Financial terms alphabetically:
| #
| A
| B
| C
| D
| E
| F
| G
| H
| I
| J
| K
| L
| M
| N
| O
| P
| Q
| R
| S
| T
| U
| V
| W
| X
| Y
| Z
|