index > define

noun

• A numerical scale used to compare variables with one another or with some reference number.
• A number or ratio (a value on a scale of measurement) derived from a series of observed facts; can reveal relative changes as a function of time.
  • synonyms: index number, indicant, indicator
• A mathematical notation indicating the number of times a quantity is multiplied by itself.
  • synonyms: exponent, power
• An alphabetical listing of names and topics along with page numbers where they are discussed.
• The finger next to the thumb.
  • synonyms: index finger, forefinger

verb

• List in an index.
• Provide with an index.
  • usage: "index the book"
• Adjust through indexation.
  • usage: "The government indexes wages and prices"

• (n.) That which guides, points out, informs or directs; a pointer or a hand that directs to anything, as the hand of a watch, a movable finger on a gauge, scale or other graduated instrument. In printing, a sign used to direct particular attention to a note or paragraph; -- called also fist.
• (n.) The second digit, that next pollex, in the manus or hand; the forefinger; index finger.
• (n.) The figure or letter which shows the power or root of a quantity; the exponent.
• (v.t.) To provide with an index or table of references; to put into an index; as, to index a book or its contents.
• (n.) That which points out; that which shows, indicates, manifests or discloses.
• (n.) A prologue indicating what follows.
• (n.) A table for facilitating reference to topics, names, and the like, in a book; -- usually alphabetical in arrangement, and printed at the end of the volume.
• (n.) The ratio or formula expressing the ratio, of one dimension of a thing to another dimension; as, the vertical index of the cranium.

Most lenders tie ARM interest-rate changes to changes in an "Index rate." These indexes usually go up and down with the general movement of interest rates. If the index rate moves up, so does your mortgage rate in most circumstances, and you will probably have to make higher monthly payments. On the other hand, if the index rate goes down your monthly payment may go down. Lenders base ARM rates on a variety of indexes. Among the most common are the rates on one, three, or five-year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations. A few lenders use their own cost of funds, over which, unlike other indexes, they have some control. You should ask what index will be used and how often it changes. Also ask how it has behaved in the past and where it is published.