Glossary

Glossary of terms used on this site

There are 105 entries in this glossary.

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Term	Definition
Indices	The products that are used to set interest rates for adjustable rate mortgage loans. Some common mortgage indexes include: the prime lending rate, the one-year constant maturity treasury (CMT) value, the one-month, six-month and 12-month LIBORs, as well as the MTA index, which is a 12-month moving average of the one-year CMT index.
Inflation	A general and progressive increase in prices; when everything gets more valuable except money.
Interest	The amount paid for the use of money. The rate is expressed as a percentage.
Interest Rate Cap	The total number of percentage points that an adjustable rate mortgage (ARM) might rise over the life of the loan.
Interest-Only Mortgage Loan	A loan requiring the borrower to make monthly payments covering only the interest on the loan until loan maturity, when the full loan balance is due.