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Index -
A published interest rate in which lenders measure the difference between
the current interest rate on an adjustable rate mortgage and that earned
by other investments. This is what determines the ARM interest rate
increase or decrease.
Interest -
A percentage based number which determines the lenders costs to borrowers
for lending monies.
Interest Only Payment -
Payment in which the interest payment for that month is paid only and none
of payment is applied to the principal.
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