Market Trader Glossary Loan hybrid mortgage rate drop

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Market Trader Glossary: Reduction-Option Loan (ROL)

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Term:

Reduction-Option Loan (ROL)

Definition:

A Hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current Mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates Drop more than 2% in a year.

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7/29/2010 - SV1