Robert McLister·General·May 27, 2009Front-loaded Mortgages Front-loaded mortgages feature a deeply discounted rate for an initial “teaser” period—often 6-12 months. After that, the mortgage reverts to a higher rate. Lenders in the past have offered 5-year front-loaded variable mortgages where the first year is at prime – 1.00%, for example, followed by prime – 0.60% in years 2-5. Front-loaded variables are popular with borrowers who want the lowest rate possible for 6-12 months, knowing that they plan to lock into a fixed rate thereafter. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.