Many lenders offer reduced interest rates for a limited time at the beginning of your loan. Also, known as a honeymoon rate, the low interest rate generally applies to the first 6 to 12 months. The interest rates can be fixed or capped. The advantage is the rates can be lower than the standard variable rate, however, you should be aware that there is generally a catch with introductory rates. Usually after the end of the introductory period, the rate returns to a variable rate that can be higher than the normal variable rate.