Fully Indexed Rate

Also found in: Acronyms.

Fully Indexed Rate

On an ARM, the current value of the interest rate index, plus the margin.

See Adjustable Rate Mortgage (ARM)/The Fully Indexed Rate.

References in periodicals archive ?
Thus, even though they may be qualified at a fully amortizing payment based on the fully indexed rate, some doubt still remains about the ability of borrowers to pay because their income is simply stated and not documented.
However, when the interest rate jumps up quickly to the fully indexed rate, the borrower's monthly payment is typically not enough to cover the monthly interest expense.
During the last major bond rally that ended in early 1987, long-term rates fell so quickly that ARM borrowers found that it was possible to refinance into fixed-rate mortgages at a lower rate than what they were experiencing at the current, fully indexed rate.

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