A "teaser rate" or "start rate" are terms used to describe the ARM introductory rate for the initial fixed interest period.
Loan Margin is the difference between the mortgage loan rate and its underlying index (on which the note rate is based).
ARMs have a specific length of time between interest rate adjustments. In times of falling interest rates, a shorter period benefits the borrower.
Interest rate caps -limitations on charges- are a common feature of adjustable rate mortgages. Caps typically apply to mortgages in three ways:
Appraisal fees (also referred to sometimes as application fees) are loan dealer fees which are usually charged as flat rate fees as opposed to a percentage of the loan.