Variable Interest Rate

An interest rate which fluctuates with the market. Interest rates naturally rise and fall, so unless they are guaranteed by the lender, they will be “variable”. These rates are set for borrowers as their best rate plus a fixed amount reflective of the borrower’s credit rating, such as “prime plus 1.5%”. As interest rates fluctuate, they adjust their prime rate, which causes all variable rates to rise and fall. (See also: Fixed Interest Rate)

×
×
August 17th, 2022