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What is a Margin for an adjustable rate mortgage?

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What is a Margin for an adjustable rate mortgage?

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To determine the interest rate on an ARM, we’ll add a pre-disclosed amount to the index called the “margin.” If you’re still shopping, comparing one lender’s margin to anothers can be more important than comparing the initial interest rate, since it will be used to calculate the interest rate you will pay in the future.

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