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calculated by adding Index + Margin = Fully Indexed Rate. This is the interest rate your 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 adjusting, typically, colorado lender mortgage springs higher than the introductory rate. Calculating this is IMPORTANT for ARM buyers, since it helps you predict the future interest rate colorado lender mortgage springs your loan. Margin - This refers to the banks profit margin above the value of the financial index. The bank seeks to 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 colorado lender mortgage springs 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 initial fixed interest period. The difference between the "Start Rate" of an ARM and the rate of a fixed terms loan is that the "Start Rate". Period - This colorado lender mortgage springs the frequency of adjustments, the longer the rate remains fixed, the better the loan is for medium colorado lender mortgage springs
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