variable-rate mortgage
51Continuous-repayment mortgage — Analogous to continuous compounding, a continuous annuity[1][2] is an ordinary annuity in which the payment interval is narrowed indefinitely. A (theoretical) continuous repayment mortgage is a mortgage loan paid by means of a continuous annuity …
52Rollover Mortgage — A mortgage in which the unpaid balance (outstanding principal) must be refinanced every few years (often three to five) at current interest rates, subject to certain limits. For example, the mortgage interest rate may not increase by more than… …
53Indexed Rate — An interest rate charged on loans to borrowers that is calculated by taking the sum of a benchmark index interest rate and a specified margin. The indexed rate is used to calculate the interest rate on an adjustable rate mortgage (ARM). The… …
54two-step mortgage — USA A type of adjustable rate mortgage (ARM) that involves a fixed interest rate for a specified period of time (usually five or seven years) followed by an adjustment to the interest rate tied to current market rates. At the adjustment date,… …
55Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… …
56fixed rate — A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal. Bloomberg Financial Dictionary * * * fixed rate fixed rate ➔ rate1 * * * fixed… …
57fixed-rate — UK US noun [C] ► FINANCE an interest rate on a loan that is fixed when the loan is taken out and that does not change: »a buy to let loan at a fixed rate of 4% → Compare FLOATING RATE(Cf. ↑floating rate), VARIABLE RATE(Cf. ↑ …
58low-start mortgage — A mortgage that offers a low interest rate initially which then rises to the lender s standard variable rate after a set date agreed at the start of the mortgage …
59floating rate — interest rate that is reset periodically, usually every couple of months or sometimes daily. Bloomberg Financial Dictionary A rate of interest which varies over time, depending on market rates of interest. Dresdner Kleinwort Wasserstein financial …
60Fully Indexed Interest Rate — The interest rate on an adjustable rate loan that is calculated by adding the margin to an index level. The interest rate on an adjustable (sometimes known as variable) rate loan is tied to a benchmark interest rate, known as an index. Popular… …
