Posts tagged floating interest rate
What Is a Floating Rate Loan?

A floating interest rate is also known as an adjustable or variable interest rate. The name comes from the fluidity of the interest rate that borrowers must contend with, as the interest percentage fluctuates throughout the life of the loan (for hybrid ARMs, the rate fluctuates after the introductory period ends). The interest rate is affected by the market’s margins or mortgage index.

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Variable Interest Rates in Relation to Home Loans

A variable interest rate is one that can go up or down based on an index. A variable interest comprises an index rate and a margin rate.

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