Definitions for "Step-Rate Mortgage"
A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.
A type of home loan, though the rates remain fixed, the policy holder's payments begin at a small amount and gradually, over time, increase.
A loan that allows a gradual increase in the interest rate during the first few years of the loan.