Definition of "Teaser rate"

Jason Treco real estate agent

Written by

Jason Trecoelite badge icon

eXp Realty

An enticingly attractive initial rate below the market offered in an adjustable rate mortgage. For example, the teaser rate may be offered at 2% below market. A borrower who cannot qualify at the market rate might be able to do so at the teaser rate.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

An agreement, debt, or low which can be operationalized, fulfilled, completed, or performed. ...

Individual with legal privileges and obligations. The legal term is sometimes used for a corporation. ...

Corporation whose stockholders are taxed as partners. That is, income is taxed as direct income to the shareholders. The key advantage of this tax treatment is that shareholders escape ...

A real estate owner's policy and rules regarding the use of the property by the tenant. In insurance, a contract that provides coverage against given risks. Coverage limits for real ...

Modification made by a municipality to the zoning of a locality. A change in zoning typically has to be requested and approved by a zoning commission and then the legislative body. It can ...

Same as term spot zoning: Zoning a portion of land in a given area for different purposes than its surrounding functions. For example, a locality may decide to spot zone a vacant lot in a ...

Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...

A situation that occurs when borrowed funds cost more than they produce. ...

Partially amortized and requiring a lump sum (balloon) payment at maturity. ...

Popular Real Estate Questions