Price Level Adjusted Mortgage

Definition of "Price level adjusted mortgage"

Cynthia "Cindy" Adams real estate agent

Written by

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

'Disputable' presumption that is subject to rebuttal based on evidence. However, the presumption prevails until it is rebutted. ...

Retail businesses next to each other with common walls on each side and the same roof. ...

Appraisal approach where property values are estimated by comparing current comparable sales. See also market approach. ...

Property to be used by a retail business in the sale of merchandise or rendering of services. An example of retail property is a store. ...

An agreement allowing occupancy of a premises for a stated period of time provided certain terms are met. A limited occupancy agreement is most frequently used when a prospective buyer is ...

Legal proceeding to exercise a right in a disagreement between private individuals or businesses. One party seeks a remedy against the other. It does not involve a criminal situation. ...

In an adjustable rate mortgage (ARM), the maximum rate that can be charged during the mortgage period. For example, John obtained an $80,000 6% ARM having a lifetime rate cap of 10.5%. ...

Typically, the term rider defines a financial concept, implying a written modification applied to an insurance policy, altering its initial clauses and provisions. The rider can update the ...

An antenuptial agreement is, as the terms composition states, an agreement that happens before the nuptials, or, in other words, the wedding. The antenuptial agreement is more commonly ...

Popular Real Estate Questions