Honeymoon Loans, sometimes called Introductory Rate Loans, are targeted to the first homebuyer. They commonly offer cheaper rates, as either a ‘fixed discount’ or ‘discounted fixed’ rate, for an initial period of time.
If you already have a loan, chances are your lender won’t offer you a Honeymoon Loan. They are usually reserved for new customers, and are meant to attract new business. While they may at first appear attractive and are undoubtedly popular, there are a number of things to look out for: