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Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.

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Margin

The margin is the fixed percentage value that is added to an index value to calculate the adjusted interest rate of an Adjustable Rate Mortgage (ARM) when it is calculated at a scheduled interval. While the index can change, the margin remains constant throughout the life of the mortgage.

See Adjustable Rate Mortgage (ARM)
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Terminology, definitions, terms, explanations, and documents for business professionals in the mortgage lending and mortgage risk management industries.