Chapter 3

Adjustable-rate mortgages

Index plus margin, held in by three caps

An explorable chapter on adjustable-rate mortgages: the fully indexed rate, initial, periodic and lifetime caps, and what the first adjustment does to the payment.

1. 3.1
   Index plus marginThe market moves the index; the margin never moves
2. 3.2
   The three capsFirst change, each change, ever
3. 3.3
   Payment shockThe first adjustment is the big one

2 slider tasks · 2 practice sets · 8 questions