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Index -- A published interest rate against which lenders measure the difference between the current interest rate on an ARM and that earned by other investments (such as one-, three-, and five-year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans).

Initial interest rate, start rate, teaser -- The interest rate of the mortgage at the time of closing.

Interest -- The amount of money charged for the use of the money borrowed.

Interest adjustment -- If the closing (the date on which the buyer takes possession of the property) occurs at a time of the month other than the date on which the mortgage payment is due, the borrower will pay an amount to cover interest from the interest adjustment date.

Interest rate ceiling -- The maximum interest rate for an ARM loan.

Interest rate floor -- The minimum interest rate for an ARM loan.

Interim financing -- A construction loan made during completion of a building or a project which is replaced by a permanent loan once the building is completed.

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