Today’s real estate word of the day is margin
Margin, the difference between the interest rate and the index on an adjustable rate mortgage, the margin remains stable over the life of the loan. It is the index which removes which moves up and down.
So for looking at an adjustable rate mortgage, which this is referring to, the it’s the rate is the index plus the margin and that equals your total rate.
The the index adjusts and floats with time. It goes up and down, and then the margin is a stable part that’s kind of like your your feet or the spread, so to speak, that they’re making the profit on said item.