Typically one to three percentage points lower than that of most fixed-rate mortgages. Lower interest rates also make ARMs somewhat easier to qualify for. The initial interest rate is tied to certain economic indicators that dictate in part what the monthly payments will be.
The starting interest rate on an adjustable-rate mortgage loan, which is often below market ARM rates. The intent of a low initial rate is to assist homebuyers that may not otherwise qualify for a mortgage loan.
The beginning interest rate at the start of an adjustable rate mortgage (ARM). It may be lower than the fully indexed rate or "going market rate" and it will remain constant until it is adjusted up or down on the adjustment date.
The interest rate you pay when you first take out the mortgage loan. On some types of mortgages this rate may only be for the first month, but on a fixed rate mortgage it stays the same for the life of the loan.
The interest rate that is fixed for some specified number of months at the beginning of the life of a mortgage. On an ARM, the initial rate is sometimes referred to as a teaser because it is below the fully indexed interest rate.
The initial rate quoted usually is a lower introductory rate, sometimes called a teaser or discount rate. This lower rate lasts only until the first adjustment, after which you will be charged the fully indexed rate.
The starting interest rate for an adjustable-rate mortgage (ARM ) loan or variable-rate home equity line of credit. At the end of the effective period for the initial rate, the interest rate adjusts periodically during the life of the loan based on changes in a specified financial index. Sometimes known as "start rate" or "intro rate". See " Teaser Rate ."
The starting interest rate of an adjustable rate mortgage (ARM). The initial interest rate on an ARM, sometimes called a teaser rate, is fixed for a certain period then adjusts to reflect overall market rates. The lender starts you off with a very low initial rate, planning that interest rates will rise in the future and adjust to market rates. Fixed rate loans, on the other hand always have the same interest rate for the life a loan, and the rate is usually higher than an ARM's initial interest rate.