Which lender has the better loan?
- Northern Virginia Finance and Mortgage Calculators
An
index rate is a widely used interest rate that
lenders use to set the interest rate on loans
and credit cards. For residential mortgages,
10-year U.S. Treasury securities are often used
for 30-year fixed-rate loans (on average, most
homeowners live in their homes for a period
of time closer to 10 years than 30 years). For
ARM loans, a common index is the Eleventh District
Cost of Funds Index (COFI), published by the
San Francisco-based district office of the Federal
Home Loan Bank. For credit cards, the U.S. commercial
prime rate is frequently used as an index rate.
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