Importance of the “Teaser Rate” on ARMs—Residential Loans

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
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Importance of the “Teaser Rate” on ARMs—Residential Loans

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Introduction:

A teaser rate at the beginning of an adjustable mortgage rate (ARM) is the introductory (or teaser) interest rate and is usually lower than a fixed rate mortgages.

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