Fully Indexed Rate:

The fully indexed rate refers to the actual interest rate being accrued on an adjustable rate mortgage. The margin (which is fixed for the lifetime of the loan) and the Index are the two components to calculating the fully indexed rate. To Calculate the fully indexed rate, simply add the margin to the index. For example:

The index is at 2.0% and you have a margin of 2.5%. The fully indexed rate is 4.5% (Calculated by adding the margin 2.5% to the index 2.0%)