variable rate loan
Adjustable interest borrowing
A variable rate loan is a loan whose interest rate fluctuates over time based on market conditions or a benchmark rate, as opposed to a fixed rate loan where the interest stays constant.
Monthly payments may rise or fall accordingly.
Mortgages, credit cards, and student loans commonly use variable rates: Our variable rate loan started low but climbed as interest rates rose.
- adjustableAble to be changed
- floatingStaying atop liquid
- ARMReduced instruction processor standard
- mortgageSecured home loan
- interestAttention, stake, or fee
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