Glossary
I
Index -
A published interest rate against which lenders measure the difference
between the current interest rate on an adjustable rate mortgage and that
earned by other investments (such as one- three-, and five-year U.S. Treasury
Security yields, the monthly average interest rate on loans closed by savings
and loan institutions, and the monthly average Costs-of-Funds incurred by
savings and loans), which is then used to adjust the interest rate on an
adjustable mortgage up or down.
Interest -
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.
Interest Only -
A term loan arrangement calling for payments of interest only, not to include any
amount for principal.
Interest Rate -
The percentage of an amount of money that's paid for its use over a specified
time period.
Interest 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.
Intermediate-Term Mortgage -
A mortgage loan with a stated maturity at the time of purchase that it is equal to
or less than 20 years.
Index -
A published interest rate against which lenders measure the difference
between the current interest rate on an adjustable rate mortgage and that
earned by other investments (such as one- three-, and five-year U.S. Treasury
Security yields, the monthly average interest rate on loans closed by savings
and loan institutions, and the monthly average Costs-of-Funds incurred by
savings and loans), which is then used to adjust the interest rate on an
adjustable mortgage up or down.
Interest -
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.
Interest Only -
A term loan arrangement calling for payments of interest only, not to include any
amount for principal.
Interest Rate -
The percentage of an amount of money that's paid for its use over a specified
time period.
Interest 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.
Intermediate-Term Mortgage -
A mortgage loan with a stated maturity at the time of purchase that it is equal to
or less than 20 years.
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| For additional questions please contact me at 281-650-7592 or via e-mail at kowens@closingjust4you.com |
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