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Financial Terms related to Mortgage
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glossary with more than five thousand financial
and business terms.
This...
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Mortgage
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
MORTGAGE
Adjustable rate mortgage
• Is a loan which has a coupon or interest rate that is subject to change on
predetermined reset dates.
These loans use interest rate indices as the benchmark
rate.
Adjustable Rate Mortgages come in many variations.
Typically, the reset dates
recur every 1, 3, or 5 years; but there are other periods used as well.
These loans
may have cap and floor features which constrain each reset change in interest rates.
There may also be lifetime cap and floor features.
Adjustable Rate Mortgages may
be strictly amortiz
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