Variable-rate loan

(redirected from Variable Rate Loan)

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.
References in periodicals archive ?
Although it is anticipated that the vehicle will be a tax-exempt bond issue (and this RFP is so structured), companies are permitted and encouraged to submit alternate proposals using other debt vehicles, including but not limited to variable rate loan pool programs.
Mark McGovern and Scott Peterson of CBRE's San Diego office worked on behalf of Invesco Real Estate and San Diego-based developer Cruzan to secure a four-year, variable rate loan through Cornerstone Real Estate Advisers Inc.
Scotwest Credit Union, which is open to people living or working in the West of Scotland, offers a fee-free variable rate loan at 4.
99 per cent, offered as a variable rate loan by HSBC and a one year fixed rate deal by the Woolwich.
Libor on the Company's $52 million variable rate loan from 95 basis points to
mortgage bill that has increased by more than pounds 70 a month on a pounds 100,000 standard variable rate loan since November 2003.
Neubig, national director of the quantitative economics and statistics group with Ernst and Young, also likened the fixed consolidation interest rates to "recent developments in the mortgage market," which, he said, have allowed the nation's homebuyers to choose between a fixed rate or a variable rate loan.
CFC will convert existing 7-Year SFR loans to either a fixed rate or a variable rate loan, for a fee, paid quarterly over the remaining quarters in the current cycle.
99%, offered as a variable rate loan by HSBC and a one-year fixed rate deal by the Woolwich.
The loan was structured to be a 10-year fixed rate plus one year variable rate loan and was funded to 57% of value.
A true tracker mortgage offers a far better deal than a standard variable rate loan, often limiting the margin above base rate to just 1 per cent.
4 million people who are due to come off short-term fixed rate mortgages this year were likely to face a pounds 210 a month rise in repayments if they went on to a standard variable rate loan.

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