floating rates

Market-adjusted loan costs

Floating rates are interest rates that fluctuate based on market conditions or a reference benchmark, as opposed to fixed rates that remain constant.

Mortgages, bonds, and loans may carry floating rates tied to indexes like LIBOR or the prime rate: With floating rates, your monthly payment could change.

Also called variable rates or adjustable rates.

Opposites
rate flexibility

floating ratesfixed rates

Unchanging interest percentages

flat rates

Family

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