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.
- variableProne to fluctuation
- mortgageSecured home loan
- home loanDebt for property purchase
- interestAttention, stake, or fee
- floatingStaying atop liquid
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Unchanging interest percentages
fixed interest · fixed-rate mortgage · flat rates · fixed APR
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