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How Soon Can a Mortgage Company Foreclose?
How to Become a Mortgage Lender
How to Work Out Mortgage Repayments
What is Mortgage Refinancing?
About Best Mortgage Rates
What Is APR Mortgage?
What Is a Mortgage Margin?
How Are Mortgage Rates Set?
How to Negotiate Low Mortgage Interest Rates
How to Get Low Home Mortgage Interest Rates
How to Compare Low Mortgage Rates With No Down Payments
How to Find Low Interest Rates 30 Year Fixed Mortgage
How to Compare Mortgage Rates
About Low Fixed Mortgage Rates
When Do Mortgage Rates Fall?
How to Make Mortgage Rate Predictions
How to Refinance a First & Second Mortgage
There are two types of loans that a person can find on their property, including mortgage loans and second… More
There are a wide range of mortgages available that can serve any number of purposes, from providing long-r… More
The mortgage principal is the balance of the loan, not including the interest, taxes or any insurance fees… More
A mortgage margin is the markup that the bank adds on to the index, or the financial index that drives the… More
Interest-only mortgages are loans that only require the interest be paid every month. These are good loan… More
When calculating an interest-only mortgage, figure out the loan amount, the interest rate and the term on … More
Mortgage interest rates are one of the costs you pay to your lender for a home loan. Interest rates are re… More
A mortgage is the amount of money a homeowner owes on his home. It is the largest and most prevalent debt … More
Qualifying for low APR loans requires a good credit score, steady employment and some negotiating finesse.… More
Finding the best mortgage rates in an economy with tight credit challenges even people with excellent cred… More
Refinancing is a good idea when an interest rate drops more than a point and a half. Better understand wha… More
Refinancing a home mortgage begins by consulting with a mortgage professional to get a good-faith estimate… More
When refinancing a home, fill out an application, provide income documentation, have the home appraised, a… More
Refinancing property after a divorce may be easier if the divorce is not yet final, so that the bank will … More
In order to get out of a mortgage default, most lenders will work with the borrower, but a person may need… More
Summary: A mortgage margin is the markup that the bank adds on to the index, or the financial index that drives the rate on the loan, so the margin is essentially the profit made by the bank. Understand more about mortgage margins with advice from an experienced mortgage broker in this free video on personal finance.
Matthew McKillen brings 21 years of industry experience in arranging loans for his clients. He has worked in financial services senior management positions in mortgage banking...read more
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"Hi, this is Matt McKillen with Innovative Financial Group. I recently got a call from a client and they had a question about their adjustable rate loan, and the questions post was, "what is the mortgage margin?" Basically, the way an adjustable rate loan works is there's three parts to your mortgage. There's what's called the index, and the index is the financial index that drives the rate on your loan which can possibly change maybe every six months to twelve months. The second part of the equation is what's called the margin. Now what the margin is, is that's a percentage point that's added over and above the index and that's what the banks profit is on your loan. So to give you an example, in real easy terms, lets say that your index is four percent, that's the money market that's driving the rate on your mortgage. The bank may have a margin on top of that, which is two percent. So your true index, or your true fully index rate on that loan is actually the two combined together so you'd be paying a rate of six. So if your index goes down to three percent and your margin is two percent, now your rate changes down to five. So, basically, to recap what a margin is, the margin is really the markup of what the bank is charging on top of the index, to determine what your final rate is, and that's generally their profit. Again, thanks for asking the question, my name if Matt McKillen with Innovative Financial Group."
eHow Article: What Is a Mortgage Margin?
Meet Mark P Cussen, CFP, CMFC eHow's Personal Finance Expert.
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