Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Coupon

FreddieMac

Updated 10-31-2026

Coupon

The Coupon is the interest rate, expressed as an annual percentage, which is passed through monthly to a security investor. For WAC ARM PCs, the Coupon is derived by calculating a weighted average of the Note Rates of the underlying Mortgages, and then subtracting the Credit Fee in Yield and the Minimum Contract Servicing Spread.

FreddieMac Glossary

FreddieMac · p. 10

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