Contents
Terminology. Despite their similarity, the terms variable-rate mortgage and adjustable-rate mortgage don’t necessarily have the same meaning. variable-rate mortgage is a more general term in use.
Fixed rate is a general term that can apply to different types of loans with a variety of uses, including student loans, mortgages, auto loans, and unsecured personal loans. What is the definition of a Variable Rate Loan? Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates.
Adjusted Rate Mortgage DEFINITION of ‘Adjustable-Rate Mortgage – ARM’. An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate applied on the outstanding balance varies throughout the life of the loan. Normally, the initial interest rate is fixed for a period of time, after which it resets periodically, often every year or even monthly.
A floating rate fund is a fund that invests in financial instruments paying a variable or floating interest rate. A floating rate fund invests in bonds and debt instruments whose interest payments.
Define variable rate. variable rate synonyms, variable rate pronunciation, variable rate translation, English dictionary definition of variable rate. variable rate.. variable rate translation, English dictionary definition of variable rate. variable rate. Translations. English: variable rate.
A basis rate swap (or basis swap) is a type of swap agreement in which two parties swap variable interest rates based on different money market reference rates, usually to limit the interest-rate risk.
The variable interest rate is a certain number of percentage points above the index rate. (The difference between the two rates is called a margin.) For example, the variable interest rate on your credit card might be prime + 13.79%.
Adjustable Rate Loan This time last year, the 15-year FRM came in at 3.99%. Lastly, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.45%, rising from last week’s rate of 3.39%. Once again, this.
Variable rate application can be either map based or sensor based. Map based VRA is pre-planned, and applications are based on VRA prescription maps that an Agronomist or Advisor prepares based on data sources. prescription maps can be created using electromagnetic induction, which is considered to be cost-effective, and non-destructive.
Variable interest rates are often tied to the prime rate, but might also be tied to the treasury bill rate or Libor. In certain economic conditions, a variable interest rate, or variable APR, is better because it allows you to pay off your credit card or loan balance at a lower cost when the index rate is down.
variable rate loan – noun a bank loan carrying an interest rate that varies according to fluctuations in a particular index