1.800.295.6186

Call today for a free consultation!

Common Mortgage Questions:

How Do I know how much
          house I can afford?

How do I know know which
          type of mortgage is best
          for me?


What is your best interest
           rate?

Once I am approved, how
          long will it take to close my
          loan?

Do you work with only
          one lender?

What does my mortgage
          payment include?

How much cash will I need
          to purchase a home?

How can I reduce my debt
          with a mortgage?

How are index and margin
          used in an ARM?

What is the difference
          between a fixed-rate loan
          and an adjustable-rate
          loan?

Mortgage Answers:

How are Index and Margin used in an ARM?

An index is an economic indicator that lenders use to set the interest rate for an ARM.

Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin.

Three commonly used indices are:

• the One-Year Treasury Bill,
   
• the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and
   
• the London InterBank Offering Rate (LIBOR).

We are always here to answer your questions and to help you through this process. info@ifmghomeloans.com