That's commonly how they do ARM's. My HELOC is basically like that - it's tied to prime, but there's no margin. So, I just pay prime, whatever that is at any given point.
On Fri, 21 Jan 2005 12:24:47 -0800, Sam <[EMAIL PROTECTED]> wrote: > Your interest rate when adjusted will be based on an index rate (the > "Index") plus a number of points (the "Margin"). Your monthly payments > will then be based on the interst rate, loan balance and remaining > loan term. > > The index will be the weekly average yield on United States securities > adjusted to a constant maturity of one year. The index is published > weekly in the Federal Reserve Statistical Release H. 15 (519). > Information about the index is also published in The Wall Street > Journal. > > Your interest rate will equal the Index plus the Margin rounded to the > nearest 1/8 of one percentage point (0.125%). > > Won Lee > > Hmm. I don't want to give you the wrong answer. I never had a mortage > > so I don't know it works. I have 10K in college loans so I know how > > they work. Mortgage compounds daily? They give you the real rate and > > the Annualized one? Is it based on what rate? LIBOR, Fed Funds, or > > random number generator with a seed of the datetime? > > > > The question is not are rates going to go up. It is when are rates > > going to go up. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143876 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
