Interest Rate Floor
Definition of "Interest Rate Floor"
The lowest interest rate possible under an ARM contract. Floors are less common than ceilings.
Popular Mortgage Terms
A clause in the note that allows the lender to demand repayment of the balance in full. A demand clause is even better (for the lender) than an acceleration clause. An acceleration clause ...
The monthly mortgage payment which, if maintained unchanged through the remaining life of the loan at the then-existing interest rate, will pay off the loan at term. ...
The period until the last payment is due. The maturity is usually but not always the same as the period used to calculate the mortgage payment. ...
A charge imposed by the lender if the borrower pays off the loan early. The charge is usually expressed as a percent of the loan balance at the time of prepayment or a specified number of ...
The most recently published value of the index used to adjust the interest rate on an indexed ARM. ...
Mortgages delivered using the Internet as a major part of the communication process between the borrower and the lender. ...
Limit on the size of payment change on an adjustable rate mortgage. ...
The option to convert an ARM to an FRM at some point during its life. ...
The number of months for which the initial interest rate holds on an ARM. ...
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