Interest Rate - Law Dictionary Search Results
Home Dictionary Name: interest rate Page: 2security
security pl: -ties 1 a : something (as a mortgage or collateral) that is provided to make certain the fulfillment of an obligation [used his property as for a loan] b : surety see also security for costs 2 : evidence of indebtedness, ownership, or the right to ownership ;specif : evidence of investment in a common enterprise (as a corporation or partnership) made with the expectation of deriving a profit solely from the efforts of others who acquire control over the funds invested [a involves some form of investment contract] see also due diligence asset-backed security : a security (as a bond) that represents ownership in or is secured by a pool of assets (as loans or receivables) that have been securitized bearer security : a security (as a bearer bond) that is not registered and is payable to anyone in possession of it cer·tif·i·cat·ed security [sər-ti-fə-kā-təd-] : a security that belongs to or is divisible into a class or series o...
prime rate
prime rate : an interest rate formally announced by a bank to be the lowest available at a particular time to its most creditworthy customers called also prime prime interest rate ...
two step mortgage
two step mortgage an adjustable-rate mortgage (ARM) that has one interest rate for the first five to seven years of its term and a different interest rate for the remainder of the term. Source: U.S. Department of Housing and Urban Development ...
cap
cap a limit, such as one placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease, either at each adjustment period or during the life of the mortgage. Payment caps do not limit the amount of interest the lender is earning, so they may cause negative amortization. Source: U.S. Department of Housing and Urban Development ...
rate lock
rate lock a commitment by a lender to a borrower guaranteeing a specific interest rate over a period of time at a set cost. Source: U.S. Department of Housing and Urban Development ...
note rate
note rate the interest rate stated on a mortgage note. Source: U.S. Department of Housing and Urban Development ...
fixed-rate mortgage
fixed-rate mortgage a mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change. Source: U.S. Department of Housing and Urban Development ...
arm
arm Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap. Source: U.S. Department of Housing and Urban Development ...
cost of funds index (cofi)
cost of funds index (cofi) an index used to determine interest rate changes for some adjustable-rate mortgages. Source: U.S. Department of Housing and Urban Development ...
floating
floating 1 : not presently committed or invested [ capital] 2 : short-term and usually not funded [ debt] 3 : having no fixed value or rate [ currencies] [ interest rates] ...
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