The initial interest rate is the beginning rate applied to an adjustable-rate mortgage, typically set for an initial period before adjustments. It often acts as an introductory rate that may be lower than prevailing market rates.
The Initial Rate Period is the timeframe in an Adjustable-Rate Mortgage (ARM) during which the initial interest rate is fixed. This period lasts until the first scheduled adjustment, after which the interest rate is recalibrated according to the underlying index.
