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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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62% - Often

Step-rate Mortgage


Synonyms:graduated payment mortgage, increasing payment mortgage
Filed Under: mortgages
Tags: mortgage, rates
 

Definition of step-rate mortgage

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:

  • balloon loan   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.
  • balloon mortgage   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.
  • balloon payment   A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
  • fixed rate mortgage (FRM)   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.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • mortgage (mtg)   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.
  • principal   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 (P&I, PI)   Acronym for the elements of a mortgage payment: principal and interest.
  • principal, interest and taxes (PIT)   Principal, interest and taxes. The components of a monthly mortgage payment.
  • principal, interest, taxes, and insurance (PITI)   Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.

More Related Terms and Acronyms

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