Variable Rate Mortgage

Variable Rate Mortgage,

Variable Rate Mortgage: What is the Meaning of Variable Rate Mortgage?

  • Variable Rate Mortgage refers to A home loan with a variable interest rate is a type of home loan that does not have a fixed interest rate. In contrast, interest payments are adjusted with rates above a certain standard or benchmark (such as Labor + 2 points). Lenders can offer lenders lower interest rates over the life of a mortgage. You can also offer an Adjusted Rate Hybrid Mortgage (ARM), which has a fixed initial period followed by a variable rate which is then recalculated from time to time.

    • A floating rate mortgage uses a floating interest rate for part or all of the loan period, rather than a fixed rate.
    • Floating rates basically use index rates such as labor or federal funds rates and then add additional credit spreads.
    • The most common example is an adjusted rate mortgage, or ARM, which usually has an initial fixed interest rate of several years, followed by a regularly adjusted interest rate on the remainder of the loan.

Literal Meanings of Variable Rate Mortgage

Variable:

Meanings of Variable:
  1. An element, property 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 drill has variable speed

Synonyms of Variable

unsteady, capricious, protean, unfixed, shifting, uneven, unpredictable, varying, fitful, temperamental, inconstant, undependable, vacillating, volatile, fluid, chameleonic, floating, irregular, inconsistent, kaleidoscopic, unreliable

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. Scolding (someone) in anger

Sentences of Rate
  1. They were asked to assess their abilities in various driving exercises.

  2. This event was considered a great success.

  3. Promotion price

Synonyms of Rate

fare, amount, deem to be, tariff, appraise, adjudge, figure, price, calculate, hire, consider to be, weigh up, evaluate, think to be, cost, compute, value, outlay, estimate, gauge

Mortgage:

Meanings of Mortgage:
  1. Transfer (assets) to lenders as collateral.

  2. A legal agreement in which a bank or other lender borrows in exchange for interest to take over the borrower, provided the transfer of ownership is canceled after the loan is repaid.

Sentences of Mortgage
  1. The farm is in mortgage

  2. I deposited one lakh cash and mortgaged the rest

Synonyms of Mortgage

mortgage, guarantee, put up as collateral, credit, pawn, advance