The initial rate on an adjustable rate mortgage (ARM)is sometimes called the teaser rate.

Name: The initial rate on an adjustable rate mortgage (ARM)is sometimes called the teaser rate.
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This statement is true. The initial rate on an ARM is often lower than the fully indexed rate, and is commonly referred to as the "teaser rate" because it is meant to entice borrowers into choosing the ARM over a fixed-rate mortgage.

The Initial Rate on an Adjustable Rate Mortgage (ARM)is Sometimes