Finance
The 'margin' on a Mississippi adjustable-rate mortgage is:
AThe initial below-market teaser rate
BA fixed percentage added to the index rate to determine the fully indexed rate✓ Correct
CThe maximum rate the loan can reach
DThe difference between the purchase price and appraised value
Explanation
The margin is the lender's fixed spread added to the variable index to calculate the fully indexed interest rate. For example, if the SOFR index is 3% and the margin is 2.5%, the fully indexed rate is 5.5%.
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