The sum of the published index plus the margin. For example if the index were 9% and the margin 2.75%, the indexed rate would be 11.75%. Often, lenders charge less than the indexed rate the first year of an adjustable-rate mortgage.

The indexed rate is determined by adding the margin to the published index.

The sum of the published index plus the margin. For example, if the index is 9% and the margin is 2.75%, the indexed rate is 11.75%.