teaser rate

teaser rate definition - business

teaser rate

An especially low interest rate offered for a short-term period by a lender. Teaser rates are widely offered by credit card companies to attract consumers to open accounts and transfer outstanding loan balances. Teaser rates are also a feature of many adjustable-rate mortgages. Also called introductory rate.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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