adjustable-rate
Changes with markets
Adjustable-rate describes a loan or mortgage whose interest rate changes periodically based on market conditions, as opposed to a fixed rate that stays constant: an adjustable-rate mortgage, adjustable-rate financing.
The rate typically starts lower than fixed alternatives but carries the risk of increasing over time.
Reduced instruction processor standard
- loanBorrowed money repaid later
- refinanceObtain new loan terms
- homeOne's personal residence
- lenderOne who loans money
borrower · principal · amortization · index · margin · cap · floor · reset
Prone to fluctuation
- floatingStaying atop liquid
- interestAttention, stake, or fee
- APRYearly borrowing cost
- primeReadying for action
LIBOR · benchmark · spread · periodic · lifetime · disclosure · terms · schedule
Irregular change over time
- uncertaintyState of being unsure
- volatilityRapid, unpredictable changeability
- increaseGrowth in amount
- spikeSharp rise or point
affordability · default · foreclosure · hedge · protection · exposure · inflation · recession
ARM
Reduced instruction processor standard
lender · borrower · principal · amortization · index · margin · cap · floor · reset · hybrid
variable
Prone to fluctuation
prime · LIBOR · benchmark · spread · periodic · lifetime · disclosure · terms · schedule · calculation
fluctuation
Irregular change over time
- uncertaintyState of being unsure
- volatilityRapid, unpredictable changeability
- increaseGrowth in amount
spike · affordability · default · foreclosure · hedge · protection · exposure · inflation · recession · stability
adjustable-ratefixed-rate
Interest that stays constant
fixed · locked-in · unchanging · predetermined · static
adjust, adjustable, adjusted, adjusting, adjustment, adjustments, readjust, readjustable, readjusted