What is the meaning of Initial Interest Rate?

Initial Interest Rate is the beginning interest rate at the start of an adjustable rate mortgage (ARM). It may be lower than the fully indexed rate or "going market rate" and it will remain constant until it is adjusted up or down on the adjustment date.

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APABarry Goldsmith. (2010). initial interest rate. Retrieved September 23, 2026, from http://smartdefine.org/initial_interest_rate/definitions/1156086
ChicagoBarry Goldsmith. 2010. "initial interest rate" http://smartdefine.org/initial_interest_rate/definitions/1156086 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, initial interest rate, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/initial_interest_rate/definitions/1156086>.
MLABarry Goldsmith. "initial interest rate" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/initial_interest_rate/definitions/1156086>