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!

All three terms are usually associated with a discounted rate of some sort that will be offered for a particular period of time.

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.

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