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 ?
Sovereign Risk: The trust collateral comprises of approximately 56% Federal Family Education Loan Program (FFELP) loans and Higher Education Assistance Loans (HEAL), and 44% private student loans originated under VSAC's variable rate loan 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.
Banks will change the relative rates between a fixed and variable rate loan depending upon their own needs.
The Chela School-Certified Loan: A competitive, variable rate loan with no pre-set annual loan limits and relaxed credit criteria.
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.
Collateral Performance: The VSAC 2012-B trust pool consists of 100% private student loans originated under VSAC's variable rate loan programs.
a fixed rate or variable rate loan in the approximate amount of the outstanding amounts of the existing AMT notes and Taxable notes (but not the Non-AMT notes, which the Authority anticipated refunding with a fixed rate Airport Revenue Bond issuance in 2017).
The loan was structured to be a 10-year fixed rate plus one year variable rate loan and was funded to 57% of value.
mortgage bill that has increased by more than pounds 70 a month on a pounds 100,000 standard variable rate loan since November 2003.

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