Step-rate Mortgage

Importance: 0.71

Is a company: no

Is a proper noun: no

Synonyms

  • increasing payment mortgage
  • graduated payment mortgage

Definition of Step-rate Mortgage

  1. A fixed-rate mortgage loan where payments are lower at the beginning of the loan, typically for two years, but then increase after the specified time period.

Related Terms and Acronyms

  • Fixed Instalment Definition,
    • Periodic (usually monthly) payment on a loan whose sum does not vary.
  • Teaser Rate Definition,
    • Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
  • Initial Interest Rate Definition,
    • The introductory interest rate on an adjustable-rate mortgage (ARM), which usually changes at a predetermined time.
  • Balloon Payment Definition,
    • A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
  • Principal Definition,
    • The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
  • Principal and Interest (PI, P&I) Acronym,
    • Acronym for the elements of a mortgage payment: principal and interest.
  • Fixed Rate Mortgage (FRM) Acronym, Very Important,
    • A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
  • Balloon Loan Definition,
    • A loan in which the payments aren't set up to repay the loan in full by the end of the term. At the end comes the balloon payment -- one that is larger than the other, periodic payments and pays off the remaining principal.
  • Principal, Interest and Taxes (PIT) Acronym, Important,
    • Principal, interest and taxes. The components of a monthly mortgage payment.
  • Interest (int, IN) Acronym & Abbreviation,
    • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
    Bank account transaction code.
  • Principal, Interest, Taxes, and Insurance (PITI) Acronym,
    • Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
  • Balloon Mortgage Definition,
    • A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.
  • Interest Rate (IR) Acronym, Very Important,
    • The rate a lender charges an individual to borrow money.
  • Mortgage (mtg) Abbreviation, Important,
    • A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
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