Certificate of Deposit Index
Certificate of Deposit Index . Today’s real estate word of the day is certificate of deposit index, so let’s go ahead and define our word. Let’s use it in a sentence and let’s discuss it for just a second. A certificate of deposit index. The whole index, right, is one of the indexes that can be used to determine in interest rates and how they change and adjust for an adjustable rate mortgage.
It is the average of what banks are paying on certificate of deposits. So that’s the definition, and to use it in a sentence, the certificate of deposit index or CD index is the number that you add to the margin to come up with the whole interest rate for an adjustable rate mortgage. So it’s index plus margin or profit, and that equals the complete rate that you have. There you go.
Certificate of deposit into a certificate of deposit index is now defined for you. There’s a bunch of words within there that are really similar that we just recently covered. So if you’re not sure of any of those other words, just scroll on up and check some of those other words out and you’ll have the complete meaning. One easy real estate word every day defined right here for you.