Glossary of Common Real Estate Terms

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Index: The measure of interest rate changes used to determine adjustments in an ARM's interest rate over the term of the loan.

Interest Rate: The percentage fee lenders charge you to use their money. The higher the rate of interest, the higher the risk. For fixed rate mortgages, the interest rate has a corresponding relationship with the points. A high number of points will lower the rate and vice versa. With an adjustable rate mortgage, understand the formula (the index plus the margin) that determines how the interest rate is calculated, after the teaser rate expires.




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Mark Tidwell 678.617.7167
Linc Realty of Atlanta 678.394.3200

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