initial interest rate

initial interest rate

In an adjustable-rate mortgage,the first interest rate charged.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The fixed rate loan was placed with a local bank at an initial interest rate of 3.85 percent for a term of 15 years.
Under the terms of the financing, the initial interest rate on the receivable facility agreement is Prime plus 3%, or 7.75%.
It has a maturity date of 25 May 2025 and assuming an interest rate for the facility at the initial interest rate specified above, the refinancing will result in annual cash interest savings of about USD5.0m driven by lower interest rates, partly offset by a higher facility size.
The bonds are being issued as 30-year amortizing debt with a mandatory tender at the end of the initial interest rate period on Dec.
The purchase price includes USD 19.95m in cash and a USD 79.8m, two-year secured term loan at an initial interest rate of 4.35% from an affiliate of the seller.
The capital securities was issued with an initial interest rate of 7.75 per cent.
Each will tempt you with an ultra-low initial interest rate -- typically 0%.
Midland National Life Insurance Company has added the MNL FoundationCore annuity, a contract with a three-year initial interest rate guarantee, with annual rate declarations after the guarantee period expires.
(C) The lump sum [??] and annuity payment factors [[??].sub.i] = 1,2, are decreasing as the initial interest rate [r.sub.0] increases (while other parameters are kept fixed).
Pricing at closing will be an initial interest rate of LIBOR + 1.40% for the senior unsecured revolving credit facility, LIBOR + 1.35% for the senior unsecured five-year term loan and LIBOR + 1.70% for the senior unsecured seven-year term loan.
"The ongoing effect of the Fed's initial interest rate hike in December has provided a glimpse of Schwab's earnings power as rates normalize, with our diversified revenue streams generating strong first quarter revenue growth and our steady expense discipline continuing," CFO Joe Martinetto said in a statement.

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