Definition of Margin:

ARM Margin Orange County:

This is the difference between the interest rate and the index which the adjustable rate mortgage is tied to such as COFI (11 - District Cost of Funds) or LIBOR (London Inter Branch Offered Rate). The margin will remain the same for the duration of the loan - it is the index which moves up and down. Generally speaking, the higher the margin, the higher the credit risk to the lender. The lower the margin the better the credit risk to the lender.

 

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