teaser rate
Temporary low interest
A teaser rate is an artificially low introductory interest rate on a loan or credit card, designed to attract borrowers.
After the promotional period ends, the rate increases—often substantially—to the standard rate: The mortgage had a teaser rate of 2% for the first year, then jumped to 7%.
The term itself signals the temporary, luring nature of the offer.
Initial discounted price
- mortgageSecured home loan
- credit cardBorrowed-funds payment tool
- loanBorrowed money repaid later
- APRYearly borrowing cost
refinancing · subprime lending · borrower · lender · debt · credit score · prepayment penalty · amortization
Attention-grabbing promotional element
- new customerRecently acquired patron
- trial offerTemporary promotional arrangement
- exclusive dealAgreement with one party only
- bait and switchFraudulent sales tactic
fine print · customer acquisition · loss leader · limited time
Thing that tempts
- baitLure for prey
- hookCurved catching device
- incentiveReward encouraging action
- temptationUrge toward the unwise
sweetener · inducement · allure · come-on · draw · appeal · seduction · trap
Having set expiration
- short-termOf limited duration
- initialName's opening letter
- trialJudicial examination of claims
- provisionalConditional and possibly temporary
introductory offer
Initial discounted price
- mortgageSecured home loan
- credit cardBorrowed-funds payment tool
- loanBorrowed money repaid later
APR · refinancing · subprime lending · borrower · lender · debt · credit score · prepayment penalty · amortization · underwriting
advertising hook
Attention-grabbing promotional element
- new customerRecently acquired patron
- trial offerTemporary promotional arrangement
- exclusive dealAgreement with one party only
bait and switch · fine print · customer acquisition · loss leader · limited time
lure
Thing that tempts
temptation · sweetener · inducement · allure · come-on · draw · appeal · seduction · trap · deceptive
limited-time
Having set expiration
- short-termOf limited duration
- initialName's opening letter
- trialJudicial examination of claims
provisional · expiration · adjustment period · expires · transition
- housing crisishousing bubble, housing crash, subprime mortgages, foreclosures, subprime loans
- promotional pricingspecial offer, limited time, early bird, welcome offer, flash sale
- scamsscam, scams, fraud, frauds, swindle
- bond strategiesladdering, immunization, roll down, flattener, curve flattening
teaser ratedefault rate
Percentage of unpaid loans
market rate · rack rate · list price · base rate · premium rate
tease, teaser, teases, teased, teasing, teasingly, rate, rates, rated