margin - in variable rate or adjustable rate loans, the percentage points that a lender adds to the index rate to arrive at the full interest rate. For example, a loan with an index rate of 7.5% and a margin of 2.5% would carry an interest rate of 10% (7.5% + 2.5%). During the life of a variable rate mortgage, the index rate will be the increment of the full interest rate that will change. The margin will remain constant. See also, adjustable rate mortgage, index, interest cap, payment cap, and variable interest rate .

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