variable rate
Changes over time
A variable rate is an interest rate or other financial charge that fluctuates over time, typically tied to a benchmark index or market conditions.
Contrasts with a fixed rate, which stays constant.
Common in mortgages, credit cards, and loans: We got a variable rate mortgage when rates were low.
Variable rates can work in your favor when benchmarks drop, but expose borrowers to risk when they rise.
- mortgageSecured home loan
- indexAlphabetical guide to contents
- trackerOne who follows trails
- benchmarkStandard for comparison
- teaserSomething that piques interest
interest only · floor · ARM · monthly payment · APR · loan terms · cap · loan · housing market · inflation index · bond yield · risk premium · credit score · escalating · yield curve · fluctuating · adjustable · changing
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- credit cardscredit card, loyalty card, cardholder, cashback offers, card number
- ratesroyalty, per diem, interest rates, exchange rates, percentage
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