What is teaser pricing?
A teaser rate generally refers to an introductory rate charged on a credit product. Credits cards may charge borrowers an introductory rate of 0%. Adjustable rate mortgages (ARMs) are also known for charging a low initial rate that helps entice borrowers.
What is a teaser period?
A teaser rate is an unusually low, sometimes 0%, initial interest rate offered for a consumer loan. When the introductory rate expires, the rates reset, often dramatically, and customers begin to see high interest rates applied to their balances and reflected in their monthly minimum payments.
What is a teaser loan?
A teaser loan is any loan that offers a lower interest rate for a fixed amount of time as a purchase incentive. Common teaser loans include credit cards with low introductory offers and adjustable-rate mortgages. Borrowers must be aware of the rates that will apply after a teaser rate expires.