what's a margin?

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Pertains to an added ammount of percentage of loan interest.

2007-10-14 13:28:43 · 1 answers · asked by K(old man) 2 in Business & Finance ➔ Personal Finance

1 answers

For a home loan, a variable interest rate is tied to an index like the LIBOR plus or minus an number percentage. This percentage is the margin. The amount above or below the interst rate of the particular index.

"Computing the mortgage rate: The formula to calculate the new interest rate is: new rate = index + margin"

http://www.mortgage-net.com/reference/programs/variable.html

2007-10-14 13:53:57 · answer #1 · answered by Treadstone 7 · 0⤊ 0⤋