Variable Rate Definition

Variable Rate Definition

variable rate mortgage, n. Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate .

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The difference between a fixed APR and a variable APR, is that a fixed APR does not fluctuate with changes to an index. A variable-rate APR, or variable APR, changes with the index interest rate.

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An Adjustable-Rate Mortgage (Arm) Fixed rate mortgages and adjustable rate mortgages (ARMs) are the two primary mortgage types. While the marketplace offers numerous varieties within these two categories, the first step when shopping.

In operant conditioning, a variable-ratio schedule is a schedule of reinforcement where a response is reinforced after an unpredictable number of responses. This schedule creates a steady, high rate of responding. Gambling and lottery games are good examples of a reward based on a variable ratio schedule.

Define variable-rate. variable-rate synonyms, variable-rate pronunciation, variable-rate translation, English dictionary definition of variable-rate. adj. adjusted periodically to a rate in accordance with market conditions: a variable-rate mortgage

Variable Rate Technology This is because variable-rate loans have lower starting interest rates than fixed-rate loans But with variable-rate loans, everything depends on how the market changes. pros: variable loans can save you money with their lower interest rates. This is a great option if you plan on paying off your loan quickly. For example, if you’re borrowing a.

A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest ). Fixed interest rate loans are loans.

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Variable-rate definition, providing for changes in the interest rate, adjusted periodically in accordance with prevailing market conditions: a variable-rate mortgage. See more.

for the life of the loan or floating (also called variable). The interest cost on debt with rates that adjust periodically is tied by a formula to an interest rate benchmark such as the London.

Although interest rates are very competitive, they aren’t the same. A bank will charge higher interest rates if it thinks there’s a lower chance the debt will get repaid. For that reason, banks will always assign a higher interest rate to revolving loans, like credit cards. These types of loans are more expensive to manage.

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