initial interest rate

initial interest rate

In an adjustable-rate mortgage,the first interest rate charged.

Initial Interest Rate

The interest rate that is fixed for some specified number of months or years at the beginning of the life of an ARM.
See Adjustable Rate Mortgage (ARM)/How the Interest Rate on an ARM Is Determined.

References in periodicals archive ?
The initial interest rate might not be as low as it can be for those with outstanding credit, but the arrangement offers hope for improvement: As the borrower continues to make payments, so their credit score can improve and they can apply to refinance with a better rate down the road.
The offer requires only 5% deposit towards the purchase price and has an initial interest rate of 3.
The initial interest rate on the SBLF funds will be 1 percent.
64 (the policy with 18 years to maturity when the initial interest rate is 6 percent) and 260.
The loan provided 3 years of I/O at an initial interest rate of 5.
By extending the initial interest rate that homeowners paid during the fixed-rate period of their hybrid ARM loan terms, the potential for payment shock may be mitigated, thereby potentially reducing the risk of default.
These loans have even higher debt-to-income ratios than a typical high loan-to-value mortgage and a three-year subsidy buy-down that reduces the initial interest rate as much as 1.
The fluctuations, called adjustments, boost or drop the initial interest rate and can occur monthly, quarterly, semiannually, or annually.
The initial interest rate for the new housing loan is likely to be set at about 2.
The Bradford & Bingley deal for pounds 100,000 has an initial interest rate of 4.
In discounted or premium variable-rate transactions where the creditor sets the initial interest rate and later rate adjustments are determined by an index or formula, the creditor must disclose both the initial payment based on the discount or premium and the payment that will be in effect thereafter.
This means an attractive initial interest rate of 5.

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