Mortgages

Index Rate

A benchmark interest rate used to calculate variable loan rates. Common indexes include SOFR, Prime Rate, and Treasury rates. ARM rates = index + margin.

Related Terms

Adjustable-Rate Mortgage (ARM)
SOFR (Secured Overnight Financing Rate)

Related Calculators

Mortgage Calculator

Understanding Index Rate

Index Rate is a key concept in mortgages. Understanding this term helps you make more informed financial decisions. Use our related calculators above to see how index rate affects your specific situation.