What are teaser rates
A) Interest rates that appear lower than they are
B) Interest rates that depend on LIBOR
C) Interest rates on mortgages with a very long amortization period
D) Interest rates that apply only for the first two or three years

Question

Quizplus · Accepted Answer

Teaser rates are low interest rates that apply for the first two or three years of a mortgage.Some house purchasers felt that they could afford mortgage payments based on teaser rates and it was hoped by both borrower and lender that refinancing would be possible at the end of the teaser rate period.

What Are Teaser Rates