variable-rate mortgage
Fluctuating interest loan
A variable-rate mortgage is a home loan whose interest rate fluctuates over time, typically tracking a benchmark rate.
Monthly payments rise or fall accordingly, unlike a fixed-rate mortgage where payments stay constant.
Also called an adjustable-rate mortgage: We got a variable-rate mortgage when rates were low, but now our payments have increased significantly.
- LIBORInterbank lending benchmark rate
- hedgingNoncommittal maneuvering
- loanBorrowed money repaid later
- refinancingReplacing a loan
- closing costsFees finalizing property purchase
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