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Adjustable Rates

Published 1/10/2011 11:43:05 AM Views: 265
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Adjustable Rate - An adjustable rate is an interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.

The indicestypically used for adjustable rate are the 1-year constant-maturity treasury securities, the Cost of Funds Index, the London Interbank Offered Rate, or the lender's own cost of funds index. The lender varies the rate to make sure their margin covers the cost of funding the loan.


Title: Adjustable Rates
Tagged: Adjustable Rate
Description: An Adjustable Rate is an interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.
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