Back to Glossary
Initial Rate
Updated
January 19, 2023
A mortgage or other loan's first-rate term contains an introductory interest rate (sometimes known as a teaser rate) that sunsets after the period. The first-rate time is only included in loans that provide an initial rate, as short as one month or as long as many years, depending on the loan type. Teaser loans are mortgages with short starting rate periods that provide meager introductory rates to lure new borrowers. Borrowers must be informed of the interest rates that apply once the first-rate period has expired.
Related Topics
10 Best Home Builders in Nashville, TN: Find Your Dream Home Today
Wesley Mortgage 2023 Year-In-Review
What Is a Property Tax Lien
What Is an Adjustable Rate Mortgage (ARM)?
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?