1.
A mortgage where the interest rate changes periodically based on a specific index.
2.
The published financial indicator used to adjust an ARM's interest rate (SOFR, T-Bill, COFI, LIBOR)
3.
The fixed percentage added to the index to determine the fully indexed rate.
4.
Fully Indexed Rate = Index + Margin
5.
The percentage of a borrower’s gross monthly income used to pay debts; includes front-end and back-end ratios.
6.
Front-End Ratio, housing expenses (Principal, Interest, Taxes, Insurance, & Association Dues)
8.
A fee charged by a lender to cover the administrative costs of making a loan.
9.
The process of spreading a loan into a series of fixed payments over time.
10.
Total of all mortgage balances compared to the property value
