A loan plan where the interest charged over the life of the loan may vary in accordance with an index that is readily verifiable by the borrower and beyond the control of the lender.
a standard mortgage, where the interest rate of the loan (and consequently the periodic repayments) can move in accordance with economic conditions at the time
A loan for which the interest rate changes as conditions in the money market change.
A loan that allows the lender to adjust the interest up or down with the market within the terms of the note. Your banker determines rates.
A loan that allows the lender to make periodic adjustments in the interest rate, according to fluctuating market conditions. Also known as an adjustable rate loan.
A loan with a floating interest rate.
Loan in which the rate of interest is tied to a specific financial index, with both the rate of interest and the monthly payments subject to change at established adjustment intervals.
If interest rates rise or drop, the borrower's home loan rate will rise or fall accordingly. This facility is usually taken up if the borrower believes that interest rates are falling and is not too concerned about rising rates. Interest rates only apply to outstanding balances on the loan.
A loan on which the rate of interest is adjusted periodically, in accordance with market rates.
A loan where the interest rate can increase or decrease at any time depending on market conditions.
Either open-end or closed-end loans having interest rates that vary with a credit union's cost of funds or a money market index.
Loan made at an interest rate that fluctuates based on a base interest rate such as the Prime Rate or LIBOR.
Interest rates that change with an index (ie. treasury notes). The interest rates for the Federal Stafford and PLUS loans borrowed prior to July 1st 2006 are set by the government each year and change annually on the first of July.
