adjustable rate
Changing interest level
An adjustable rate is an interest rate that changes periodically based on market conditions, as opposed to a fixed rate that stays constant.
Most commonly appears in adjustable-rate mortgages, where the interest—and therefore monthly payment—may rise or fall over the life of the loan.
Borrowers accept uncertainty in exchange for lower initial rates.
- home financingLoans for property purchase
- housing marketTrade in residential properties
- loan termsBorrowing agreement specifications
- fine printMiniature contractual text
- debt trapSelf-perpetuating financial burden
monthly payment · yield curve · monetary policy · ARM · credit market · financial indices · risk tolerance · personal loans · student loans · banking services · economic cycles · refinancing
- mortgagesmortgage broker, mortgage payment, mortgage insurance, mortgage deed, home loan
- housing crisishousing bubble, housing crash, subprime mortgages, foreclosures, subprime loans
- interest ratesinterest, interest charge, interest income, interest payments, compound interest
- loan termsunsecured loans, loan term, short-term, secured loans, long-term
- mortgage termsmortgages, home loans, foreclosure, lien, lenders
- debtdebt, creditor, owe, debtor, lender
adjust, adjustable, adjusted, adjusting, adjustment, adjustments, adjusts, readjust, readjustable