Fully Indexed Rate
Definition of "Fully indexed rate"
Interest rate on an adjustable rate mortgage based on the total of the current value of an index and margin applicable to the mortgage. The rate is the basis for the computation of monthly loan payments. Assume a mortgage is indexed to the consumer price index, and it has a value of 5%. The margin on the loan is 1.5%.The fully indexed rate will be 6.5% which is the basis for the initial year's interest rate. The interest rate will change each year depending on the change in the related index.
Popular Real Estate Terms
Statement made verbally. It is better legally to have a written statement because verbal ones without witnesses may be denied. ...
Also called trust deed. A document that conveys title to a neutral third party during the period in which the mortgage loan is outstanding as collateral for a debt. ...
Same as term soil porosity: Extent to which soil has cavities or pores, thereby allowing water to pass through. ...
(1) foreclosed real estate or subject property in a bankrupt estate. (2) Income property which is making inadequate returns and has a negative capitalization rate. ...
Money payments to be delayed for a future date or extended over a period of time. ...
A void property is a real estate property that is immediately available for new owners or renters as it is vacated. Void real estate properties can be occupied at a short notice as no ...
Situation in which an owner of property sells the property to an investor and then leases the property back, usually for a 20- or 30- year term. ...
Giving of a promise or guarantee to the receiver to instill confidence. ...
Recurring obligation or assurance given. ...
Have a question or comment?
We're here to help.