Price Level Adjusted Mortgage

Definition of "Price level adjusted mortgage"

Cynthia "Cindy" Adams real estate agent

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Cynthia "Cindy" Adamselite badge icon

Keller Williams Realty Island Life

Interest rate on a mortgage is changed periodically based on the change in a general price index to take into account inflation, such as a yearly adjustment. An example is the consumer price index. For example, if the inflation rate increases so does the interest rate the borrower has to pay.

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