The beginning interest rate of a mortgage loan. With ARM loans, it is the interest rate for the first period, as the ARM rate will adjust in subsequent periods. With 2-1 buydown loan, for example, the starting rate is two (2) percentage points lower than the note rate. The start rate is usually lower than current market rates, in order to help the applicant qualify for a larger loan amount. For more information, see the "ARM Loans" article in the "Loan Programs" section.
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