Margin - The Margin is the fixed component on an Adjustable Rate Mortgage "ARM" loan. This component remains constant throughout the term of the loan.For loan programs with Adjustable Rate features, the interest rate consist of two parts, the index and the Margin. While some ARM's have lower Margins, their underlying indices are often higher than others. When comparing different ARM products, it is important to compare both the Margin as well as the index used to calculate the interest rates.
Borrowers when applying for an Adjustable Rate Mortgage should request the ARMS with the lowest Margin and least volatile index. Margin rate is fixed for the entire term of your loan but index rate will vary depending on market conditions. Monthly payments will be based upon margin and index rate added to together.
There are different types of 100% loans. You can
either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage
professional to see which program is best for you!
