What is a rate-improvement mortgage?
The Bankrate.com financial term of the day is: "Rate-Improvement Mortgage."
Want a lower mortgage rate but don't want to go through all the trouble of refinancing? If you had taken out something called a rate-improvement mortgage, you'd have the opportunity for a rate cut built right in. When rates go down, this mortgage option allows a one-time rate reduction with no refinancing charges.
A rate-improvement mortgage essentially comes with a coupon entitling you to one hassle-free cut in your mortgage rate.
To compare home loans, visit the Mortgage section at Bankrate.com.