Most Adjustable Rate Mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a:

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A teaser rate is a temporarily reduced interest rate offered on an adjustable rate mortgage (ARM) loan. It usually lasts for a short period, typically between six months to a year and is used to attract borrowers to take out the loan. After the teaser period expires, the interest rate adjusts to the prevailing market rate, and the borrower's monthly payment could increase significantly.

Most Adjustable Rate Mortgage (ARM) Loans Have Been Marketed with a Temporarily