two-step mortgage
USA
A type of adjustable rate mortgage (ARM) that involves a fixed interest rate for a specified period of time (usually five or seven years) followed by an adjustment to the interest rate tied to current market rates. At the adjustment date, borrowers often select either a variable rate or a fixed rate for the rest of the mortgage term.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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