Escalating/Non-Escalating

Escalating/Non-Escalating

Escalating and non-escalating are terms used to describe the interest rate in home mortgage loans. They can also refer to other aspects of a loan, but most of the time, they refer to interest rates. 

If escalating refers to the interest rate, then a home mortgage loan is said to have an escalating clause, if in the contract, it states that the interest rate can fluctuate (such as in an adjustable rate home mortgage loan).

Escalating/Non-Escalating

The federal law does not govern these clauses or policies; home mortgage loan companies, lenders and state law officials govern them. Learn more about home mortgage loan companies.

On the flip side, a non-escalating clause can refer to the interest rate not increasing in a home mortgage loan. 

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