Rate Index

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • adjustable-rate mortgage index
  • yield index

Definition of Rate Index

  1. A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes for adjustable-rate mortgages and other variable-rate loans.

Related Terms and Acronyms

  • Consumer Price Index (CPI) Bank, Important,
    • An index that measures movements in the average price of products and services typically consumed by Canadian families.
  • Spread Bank,
    • The difference between the interest rate charged to borrowers and the interest rate paid to depositors.
  • Variable Rate Mortgage (VRM) Acronym, Very Important,
    • Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."
    A type of mortgage loan offered by brokers and lenders.
  • Payment Cap Definition,
    • A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.
  • Adjustment Period Definition,
    • The time between changes in the interest rate in an adjustable-rate mortgage.
  • Variable Interest Rate Bank,
    • Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
  • Interest Rate Cap Definition,
    • A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.
  • Index Bank,
    • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
  • Variable Rate Bank,
    • A floating percentage value that fluctuates based on certain conditions.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage