Variable interest rate

Variable interest rate,

Definition of Variable interest rate:

  1. Interest rate that fluctuates over the term of a loan on the basis of changes in an index that reflects changes in the market rates of interest.

  2. A variable interest rate is a rate that moves up and down with the rest of the market or along with an index. The underlying benchmark interest rate or index for a variable interest rate depends on the type of loan or security, but it is often associated with either the London Inter-Bank Offered Rate (LIBOR) or the federal funds rate.

  3. A variable interest rate (sometimes called an “adjustable” or a “floating” rate) is an interest rate on a loan or security that fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically. The obvious advantage of a variable interest rate is that if the underlying interest rate or index declines, the borrower’s interest payments also fall. Conversely, if the underlying index rises, interest payments increase. Unlike variable interest rates, fixed interest rates do not fluctuate.

How to use Variable interest rate in a sentence?

  1. The underlying benchmark interest rate or index for a variable interest rate depends on the type of loan or security, but it is frequently linked to the LIBOR or the federal funds rate.
  2. Variable interest rates can be found in mortgages, credit cards, corporate bonds, derivatives, and other securities or loans.
  3. A variable interest rate fluctuates over time because it is based on an underlying benchmark interest rate or index that changes periodically with the market.

Meaning of Variable interest rate & Variable interest rate Definition

Variable Interest Rate,

How Do You Define Variable Interest Rate?

  1. A floating interest rate (sometimes called a floating interest rate or floating interest rate) is the interest rate on a loan or bond that fluctuates over time. This is because it is based on a base rate or benchmark that changes regularly. The main advantage of floating interest rates is that if the base interest rate or index falls, interest will be paid by the lender. On the other hand, if the underlying index increases, interest payments will increase. Unlike variable interest rates, fixed rates do not fluctuate.

    • Floating interest rates vary from time to time as they are based on the base rate or benchmark which changes from time to time with the market.
    • The basic benchmark or floating rate index depends on the type of loan or guarantee, but is usually linked to the LIBOR or federal funds rate.
    • Floating interest rates can be found on mortgages, credit cards, corporate bonds, derivatives and other bonds or loans.

  2. Meaning of Variable Interest Rate: When the interest rate of the loan changes with the market conditions during the life of the loan.

  3. The definition of Variable Interest Rate is: Interest rates are adjusted according to the evolution of market interest rates. They can be found in mortgages, bonds and deposit certificates as required.

Literal Meanings of Variable Interest Rate

Variable:

Meanings of Variable:
  1. An element, feature or element that may vary or change.

  2. It is contradictory or a static pattern that changes.

  3. It can be edited or customized.

Sentences of Variable
  1. There are many variables involved in making meaningful predictions

  2. The quality of hospital food varies greatly

  3. The speed of the variable in the drill

Synonyms of Variable

unsettled, inconstant, unstable, varying, temperamental, volatile, shifting, fluid, fluctuating, changing, changeable, chameleonic, kaleidoscopic, irregular, capricious, unreliable, fickle, movable, wavering, inconsistent, fitful, vacillating, unsteady, undependable, uneven

Interest:

Meanings of Interest:
  1. Create curiosity or concern (no)

  2. The state of wanting to know or learn something or someone.

  3. Amount that is paid at a fixed rate for permanently used money for borrowing or for delay in repayment of loans

  4. Benefits or benefits of a person or group.

  5. A company's process, act or action, especially of a financial nature.

  6. A group or organization that has a particular common concern, especially in politics or business.

Sentences of Interest
  1. I think Eric might be interested in the book.

  2. He looks around with interest

  3. Integration is not in the public interest

  4. Voters must declare their interests

  5. Code of National Interests in India, Brazil and Africa

Synonyms of Interest

dividends, notice, appeal to, stake, absorption, scrutiny, for the benefit of, intrigue, fascinate, returns, engrossment, equity, to the advantage of, attract, claim, share, investment, be of interest to, attentiveness, stock, be attractive to

Rate:

Meanings of Rate:
  1. Set a pattern or value for a particular scale (object).

  2. Think of it as a particular quality, standard or area.

  3. A measure, quantity or frequency that is usually measured in relation to another quantity or unit of measure.

  4. Pay a fixed price or charge something for something, especially good or service.

  5. Scolding (someone) in anger

Sentences of Rate
  1. This program is considered very successful.

  2. Promotion price

Synonyms of Rate

adjudge, think to be, tariff, compute, reckon to be, put a value on, deem to be, charge, judge to be, fare, value, figure, gauge, consider to be, assess, calculate, amount, evaluate, hire, weigh up