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Introductory rate : ウィキペディア英語版 | Introductory rate An introductory rate (also known as a teaser rate) is an interest rate charged to a customer during the initial stages of a loan. The rate, which can be as low as 0%, is not permanent and after it expires a normal or higher than normal rate will apply.〔The complete idiot's guide to managing your money By Robert K. Heady, Christy Heady, Hugo Ottolenghi, page 235 ()〕 The purpose of the introductory rate is to market the loan to customers and to seem attractive. They are commonly used for the application of balance transfers, and they may or may not apply to cash advances.〔Truth in lending By Ralph J. Rohner, Frederick H. Miller, Robert A. Cook, Alvin C. Harrell, Elizabeth Huber, American Bar Association. Section of Business Law, page 510 ()〕 In the United States, the Fair Credit and Charge Card Disclosure Act (FCCCDA) requires that the rate that will occur following the expiration of the introductory rate be clearly disclosed to the customer.〔(Personal Finance By E. Thomas Garman, Raymond Forgue, page 188 )〕 ==When determining qualification for a loan== Sometimes, due to an introductory rate, an applicant can get approved for a mortgage based on payment history, when that applicant may have had a good payment history on the introductory rate, but may not be able to maintain such payments once this rate expires and rises〔California Real Estate Practice By William H. Pivar, Lowell Anderson, Daniel S. Otto, page 354 ()〕
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