Definition: The fixed portion of your loan rate which, when added to the index rate, equals your full interest rate.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Examples:
If on the adjustment anniversary, an index moves from 2% to 4% with a 2.25% margin, the interest rate charged to the consumer will be 6.25%.
