Margin
In an adjustable rate loan, the difference between the index rate and the interest rate of the loan. Example: The borrower's interest rate is 2 points (percent) over the prime rate. The 2 points is called the margin.
In an adjustable rate loan, the difference between the index rate and the interest rate of the loan. Example: The borrower's interest rate is 2 points (percent) over the prime rate. The 2 points is called the margin.
