Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,891,682,073 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Variable-Rate Loan
(redirected from Adjustable-Rate Loans)

     0.01 sec.
Variable-rate loan
Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR.
Variable-Rate Loan
A loan with an interest rate that changes periodically. Generally speaking, a variable rate loan is linked to some major benchmark rate; for example, the interest rate may be stated as "LIBOR + 1%." The loan may or may not have a cap on how much the interest rate can rise or fall, or on how often the interest rate may change. Very often, the initial interest rate for a variable-rate loan is lower than that for a fixed-rate loan. This allows more people to qualify for a loan; however, this kind of loan can be risky because the interest rate (and therefore the monthly payment) can rise unexpectedly. See also: Adjustable-rate mortgage.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
Last year, most borrowers losing their homes were on sub-prime adjustable-rate loans.
MOREthan one in 10 Americans [...]; Business IN BRIEF by Daily Record (Glasgow, Scotland)
Greater lender discounts for introductory adjustable-rate mortgage rates and the increasing popularity of hybrid ARMs relative to one-year adjustable-rate loans has resulted in a decline in the share of ARMs in overall mortgage lending, according to a survey by Freddie Mac.
Freddie Mac: ARM share declines as hybrids grow in popularity by Mortgage Banking
This section also gives an overview of the home loan process, includes information to help borrowers choose between fixed-rate and adjustable-rate loans, explains what lenders need in a loan application, and offers an easy-to-understand glossary of common loan terms.
New Full Spectrum Lending Web Site Enhances Consumer Convenience by PR Newswire
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.