The value of the financial index, expressed as a percent, used to calculate the disclosed, fully-indexed interest rate that must be disclosed to the borrower for adjustable rate mortgages.
Valid Values:
Valid format is “###.####”; for example, enter 2.5% as “2.5000” up to 4 decimal places.
When to Use:
Required for all Adjustable Rate Mortgages (ARMs).
How to Use:
Enter the value of the index (Sort ID 110 - Index Source Type) used to generate the Settlement/Closing Disclosure Statement.
Enter the value of the index used to calculate the initial note rate for an ARM (not taking into account any discounts or premiums). This is the value of the index in effect the day the Settlement/Closing Disclosure Statement to the Borrower was prepared.
