Initial interest rate
Definition
The interest rate that is fixed for some specified number of months at the beginning of the life of a an ARM. The initial rate is sometimes referred to as a "teaser" when it is below the fully indexed interest rate. See Information to Evaluate an Adjustable Rate Mortgage.
Related Terms Other terms related to 'Initial interest rate' starting with the letter 'I' Internet mortgages, Interest due, Indexed ARM, Interest cost, Interest only mortgage
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