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'

Interest payment, Interest rate floor, Interest rate, Internet mortgages, Interest rate index

Browse by Letter »   1 4 A B C D E F G H I J L M N O P Q R S T U V W Y