Index is defined as a market-sensitive interest rate that determines interest-rate changes on adjustable-rate mortgages and other variable rate loans. Common indices include the six-month London Interbank Offered Rate (LIBOR), the Federal Home Loan Bank 11th District Cost of Funds (COFI), and the prime rate as listed in The Wall Street Journal.
[Last updated in June of 2022 by the Wex Definitions Team]