variable-rate mortgage
111Annuity (finance theory) — The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time. This usage is most commonly seen in academic discussions of finance, usually in connection with the valuation of the… …
112Cost of Funds Index — A Cost of Funds Index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans. The interest rate on an adjustable rate mortgage, for example, is… …
113Spanish property bubble — The residential real estate bubble in Spain saw Real Estate prices rise 247% from 1997 to 2005 [ [http://www.spainrei.com/MiV Spain Property Prices 95 07 yearly.htm According to the Spanish Ministry of Housing ] ] . € 651,168,000,000 is the… …
114Cost of funds index — A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans. The interest rate on an adjustable rate mortgage, for example, is… …
115Swaption — Options on interest rate swaps. The buyer of a swaption has the right to enter into an interest rate swap agreement by some specified date in the future. The swaption agreement will specify whether the buyer of the swaption will be a fixed rate… …
116swaption — An option to enter into a swap. A payer or put swaption is the option to enter into a pay fixed/receive floating swap. A receiver or call swaption is the option to enter into receive fixed/pay floating swap. American Banker Glossary options on… …
117Conversion Option — A clause associated with some adjustable rate mortgages that allows the borrower to convert the variable interest rate to a fixed rate within a certain time period, or at certain future dates. The conversion option is not free; an adjustable rate …
118cap — An upper limit for a variable, such as the upper limit on the interest rate paid or received in a transaction. For example, an adjustable rate mortgage may have a cap of 10 percent. In this case, the rate can adjust however the loan terms provide …
119ARM Margin — A fixed percentage rate that is added to an index value to determine the fully indexed interest rate of an adjustable rate mortgage (ARM). The margin is constant throughout the life of the mortgage, while the index value is variable. For example …
120Financial capital — is money used by entrepreneurs and businesses to buy what they need to make their products or provide their services. Financial capital vs. real capitalFinancial capital refers to the funds provided by lenders (and investors) to businesses to… …
