| ARMs will certainly rise, and with insufficient credit and income, the borrower may be forced to trade equity for time, and in some markets, not as advantageously as today. Terminology Fully current ma mortgage rate Rate - The price of the ARM as calculated by adding Index + Margin = Fully Indexed Rate. This is the interest rate current ma mortgage rate loan would be at without a Start Rate (the introductory special rate for the initial fixed period). This means, your loan would be higher today if it was current ma mortgage rate typically, 1-3% higher than the introductory rate. Calculating this is IMPORTANT for ARM buyers, since it helps you predict the future interest rate of your loan. Margin - This refers to the banks profit margin above the value of the financial index. The bank seeks current ma mortgage rate make a profit above the costs of inflation. The index is a measure of the cost of funds as measured by inflation. Index - A publicly published financial index such as LIBOR (usually 1 month, 6 month or 12 month), 11th District Cost of Funds Index, MTA, etc. Start Rate - The introductory rate provided to purchasers of ARM loans for the current ma mortgage rate fixed interest period. The difference between the "Start Rate" of an ARM and the rate of a |  |
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