Margin

Margin

The margin is the number of percentage points added to the index by the mortgage lender to set your interest rate on an adjustable-rate mortgage (ARM) after the initial rate period ends. The margin is set in your loan agreement and won't change after closing. The margin amount depends on the particular lender and loan. Understand how the margin factors into an adjustable-rate mortgage loan (cfpb.gov/askcfpb/1