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Primary Mortgage Market Survey Definitions

Commitment Rate
The interest rate a lender would charge to lend mortgage money to a qualified borrower exclusive of the fees and points required by the lender. This commitment rate applies only to conventional financing on conforming mortgages with loan-to-value rates of 80 percent or less.
ARM Index
The one-year Treasury
Loan to Value Ratio (LTV)
The ratio of the loan amount of a mortgage loan to the lower of the appraisal value or purchase price of the property securing the loan.
Origination Fees and Discount Points
The total charged by the lender at settlement. One point equals one percent of the loan amount.
Margin
A fixed amount added to the underlying index to establish the fully indexed rate for an ARM.

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