Definitions for **"Two-Step Mortgage"**

An adjustable rate mortgage which has one interest rate for the first part of the mortgage (usually five or seven years), and a different interest rate for the remainder of the mortgage.

Mortgage where the interest rate stays the same for a stated period then changes, typically after 5 or 7 years.

A mortgage in which the borrower receives a fixed rate for a specified number of years (most often 5 or 7), and then receives a new interest rate based on the terms in the note.

a combination of a fixed mortgage and an adjustable-rate mortgage

a variation on the combined mortgage which offers a low interest rate and payments early on, and then "steps up" the interest and payment amounts to higher values at a pre-determined time (usually five to seven years after the start of the loan)

A mortgage in which the borrower receives a below-market interest rate for a specific time period (generally seven or ten years), and then receives a new interest rate adjusted (within specified, pre-agreed limits) to market conditions at that time. The lender in certain cases has the option to call the loan due with 30 days notice at the end of seven or ten year period. underwriter A mortgage banking who analyzes the risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. The writer evaluates the borrower's credit history, employment history, assets, debts, the subject property's appraisal and other factors such as loan guidelines when making loan decisions.

Loan with lower initial fixed interest rate, increasing after conversion period.

a mortgage that offers a below-market interest rate for a fixed time, usually seven to ten years, then provides for a new interest rate that is adjusted to market conditions at that time. It offers the advantage of a relatively low, fixed payment; however, the rate can rise substantially at the end of the term.

A mortgage in which the borrower receives a below-market interest rate for a specified number of years, and then receives a new interest rate adjusted to market conditions at that time. !-- ctxt_ad_partner = "4779919400"; ctxt_ad_section = ""; ctxt_ad_bg = ""; ctxt_ad_width = 728; ctxt_ad_height = 90; ctxt_ad_bc = "FFFFFF"; ctxt_ad_cc = "FFFFFF"; ctxt_ad_lc = "0000FF"; ctxt_ad_tc = "000000"; ctxt_ad_uc = "999999";

An adjustable-rate mortgage (ARM) with one interest rate for the first five or seven years of its mortgage term and a different interest rate for the remainder of the amortization term.

Mortgage in which the borrower receives a below-market interest rate for a specified number of years (usually 5 or 7 years), and then a new interest rate adjusted (within limits) to market conditions at that time.

mortgage in which you receive a below-market interest rate for a specified number of years (most often seven or 10 years), and then receive a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan, due within 30 days notice, at the end of seven or 10 years. It is also referred to as a Super Seven or Premier mortgage.

An adjustable mortgage with two interest rates: one for the first 5 or 7 years of the loan, and the other for the remainder of the loan.

A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan due with 30 days notice at the end of seven or 10 years. Also called "Super Seven" or "Premier" mortgage.

An adjustable rate mortgage with one interest rate for its first five or seven years, and with another interest rate for the rest of its amortization term.

A home loan in which the interest rate stays the same for a period (often the first five or seven years), then changes to another interest rate for the remainder of the loan period.

Type of loan in which the interest is at a set rate for the first five to seven years of the loan and then, for the duration of the loan, switches to different rate.

A type of adjustable-rate mortgage (ARM) that has one interest rate for the first few years (typically 5 or 7), and a different rate for the remainder of the amortization term.

A hybrid loan between a fixed-rate and adjustable-rate loan; the lower rate remains in effect for seven years and is then automatically adjusted once for the balance of the loan period.

A type of adjustable rate mortgage that has one interest rate for a predetermined initial period and then adjusts to a fixed rate that lasts for the term of the loan

A loan where the interest rate is fixed for the first seven years and then is adjusted one time for the balance of the loan period.

See alternative mortgage products. Back

With this type of loan homebuyers get a fixed rate loan at a slightly lower interest rate for a fixed period of time (most often for 5, 7, or 10 years) and then the interest rate is adjusted to fit market conditions at that time. After that adjustment, the mortgage maintains a fixed rate for the remaining years.

A mortgage contract in which the interest rate changes after a given period of time, such that the rate charged is lower for the first part of the term of the mortgage and then market rate or higher later in the term. (Return to the top of the page.)

a type of mortgage in which the borrower receives a below market rate of interest for a determined number of years (such as 7 or 10 years), and then receives a new interest rate (within limits), based on market conditions at that time. Lenders frequently contractually reserve the option to "call in" the loan and make the entire amount of principal due at the end of the determined number of years. Some lenders call this type of mortgage a "Premier" or "Super Seven" or 'Super Ten."

Mortgage with a low fixed interest rate for 5, 7 or 10 years, which is then adjusted to a new rate for the remainder of the loan.

Also called a "Premier" or a "Super Seven" mortgage. A mortgage in which the borrower receives a below-market interest rate for a specified number of years (typically seven or ten), and then receives a new interest rate adjusted to market conditions at that time. The lender may have the option to require payment of the remaining loan balance, with 30-days notice, at the end of seven or 10-years.

Adjustable mortgage with one interest rate for the first five or seven years of the loan and another for the remained of the loan term.