- The "Margin" is how the Lender makes their
"profit". I.e., if the Margin is 2.95%, the Lender will always make 2.95%
of the existing loan amount regardless of what the monthly Index
does. If the Index goes up, the Lender only earns 2.95%, if the Index
goes down they only earn 2.95% of the new loan balance.
- The Margin directly effects
the monthly :
-
Principal and Interest (P.I.)
payment or (Index + Margin
x outstanding loan balance)
- Fully-Indexed Rate (Index + Margin)
-
Scheduled payment or (Index + Margin
x outstanding loan balance)
All of these "Rates"
or "payments" are the same, but they can be known by different names.
- The Margin is
fixed for the
life of your loan (after your loan is locked in.)
- You will find the different Margin
choices on the "Rate Sheet" hyper-link.
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