Initial Rate Duration

Most adjustable rate loans (ARMs) offer an initial interest rate below the current market rate. This initial or “teaser” rate expires after a period called the initial rate duration, which may last months or years.

Related Terms:

  1. Blended Rate
  2. Annual Percentage Rate (APR)
  3. Convertible Adjustable-rate Mortgage
  4. Initial Interest Rate
  5. Initial Rate Cap

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