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#587022 - 07/21/06 07:11 PM Rate Terminology on HELOCs
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
What is/are the differences between a "teaser", "promotional", "introductory" rate when HELOCs are being advertised? The regulation refers to discounted and initial rates. We are having some discussions about this and what I'm thinking is a "discounted" rate someone else calls something else? I would like to understand the differences (if any) so I can be sure I am speaking the same language as well as making sure our disclosures are accurate. Appreciate your thoughts!

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#587023 - 07/24/06 09:59 PM Re: Rate Terminology on HELOCs
ahou Offline
Power Poster
Joined: Aug 2002
Posts: 3,094
All three terms are usually associated with a discounted rate of some sort that will be offered for a particular period of time.
Opinions are my own and not of my employer.

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#587024 - 07/25/06 02:19 AM Re: Rate Terminology on HELOCs
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
I agree with the exception of promotional. A promotional rate could be a fixed rate for the term of the loan if the loan is opened during the "promotion". But ahou is correct that in most cases they are thought of as the same and associated with a discounted/lower rate for a set period after the account is opened before the rate increases.
The opinions expressed are mine and they are not to be taken as legal advice.

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#587025 - 07/25/06 03:34 PM Re: Rate Terminology on HELOCs
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
I agree that they generally mean the same, but "teaser" has a negative connotation to some people. They might equate teaser to "bait and switch".

Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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