Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Step-Rate Mortgage

California Association of Realtors

Updated 10-31-2026

Step-Rate Mortgage

A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.

California Association of Realtors Glossary

California Association of Realtors · p. 12

FreddieMac

Updated 10-31-2026

Step-Rate Mortgage

A Mortgage modified under HAMP with an interest rate scheduled to step up or increase over time.

FreddieMac Glossary

FreddieMac · p. 42

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