RSS Feed (xml)

Powered By

Skin Design:
Free Blogger Skins

Powered by Blogger

Sunday, August 12, 2012

Teaser Loan

Definition Of  Teaser Loan :
An adjustable-rate mortgage loan in which the borrower pays a very low initial interest rate, which increases after a few years. Teaser loans try to entice borrowers by offering an artificially low rate and small down payments, claiming that borrowers should be able to refinance before the increases occur.
This method of loaning is considered risky, as default rates are high. 

No comments: