adjustable rates

Changing loan terms

Adjustable rates are interest rates that change over time based on market conditions, most commonly in mortgages.

An adjustable-rate mortgage (ARM) typically starts with a fixed rate for an initial period, then adjusts periodically according to a financial index: Their adjustable rate jumped two points after the first five years.

Contrast with fixed rates, which remain constant throughout the loan term.

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rate variability

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Unchanging interest percentages

fixed interest · fixed-rate mortgage · flat rates · fixed APR

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