Mortgage Calculations

27% of users found this useful:The money marketDefinitions:U.S. Savings bonds: Series EE bonds earn an adjustable market-based rate that changes twice annually. Bonds issued after May 1, 1997, and sold within five years will forfeit three months' interest. For general savings bonds information, phone 1 (800) 553-2663. For an online calculator to inventory your savings bonds, track their interest rates or identify when a bond will next accrue interest, click on www.savingsbonds.gov.Prime reference rate: A benchmark for setting the interest rate that Bank of America charges its most credit-worthy business customers.Federal funds rate: The rate charged on unsecured overnight borrowings, usually of $1 million or more, by banks and large corporations.Primary credit rate: Rate charged on primary credit available for very short terms as a backup source of liquidity to to banks and other financial institutions. This rate replaced the discount rate as Jan. 9, 2003.Broker loans: Short-term loans to brokerage houses backed by securities.Treasury bills: Obligations of the U.S. government. For more information on results or auction announcements, call (800) 722-2678. ARM: Interest rates on adjustable-rate mortgages are tied to various indexes. Two common indexes are known as LIBOR and the cost of funds.London Interbank Offered Rates: The average of interbank offered rates for dollar deposits in the London market based on quotations at five major banks.Cost of funds: The monthly weighted average cost-of-funds index from the Federal Home Loan Bank Board for the 11th district, which includes savings institutions in California, Arizona and Nevada. The index reflects the interest that institutions pay to their sources of mor ...Mortgage Blog