Initial Rate Period

Initial Rate Period

The number of months for which the initial interest rate holds on an ARM.

See Adjustable Rate Mortgage (ARM)/How the Interest Rate on an ARM Is Determined.

References in periodicals archive ?
All provide customers with the flexibility to make regular or lump sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without having to pay an Early Repayment Charge.
All the mortgages would allow customers to make regular or lump-sum overpayments of up to 20% of the outstanding balance each year during the initial rate period, without incurring an early repayment charge.
In the case of ARMs with a very low initial rate, the interest-only period is always longer than the initial rate period, loan, example, ml ARM with an interest-only option for 10 years may have an initial rate period of six months.
The bonds will be issued as long-term adjustable rate revenue bonds with a mandatory put feature at the end of the initial rate period set no earlier than Nov.
Typically, the highest rates either have an introductory bonus or a guaranteed minimum rate, so it makes sense to use them and switch to another such account when the bonus or initial rate period ends.
IF you have signed up to a bargain credit card with a 0 per cent introductory rate to cover the cost of Christmas, make a note in your diary of the date that the initial rate period expires, and aim to clear the debt by then.
Interest has been capitalized through the initial rate period.
At the end of the initial rate period, the bonds will automatically convert to a weekly rate mode but may be converted to a term or fixed rate interest mode thereafter.
The initial rate period will extend from the closing date to and including May 31, 2009.
During the initial rate period the SBPA will be sized to cover any mandatory tender event and will provide for the payment of both principal and an interest component of 180 days at 3.
The bonds were issued in the term rate mode and will continue to bear a fixed rate of interest until June 1, 2006, the end of the initial rate period.
The SBPA supporting the series 2006A bonds provides coverage for the principal portion of the purchase price and, during the initial rate period, 199 days of interest and thereafter 35 days of interest at the maximum interest rate of 12%.

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