What Is Variable Rate

Variable Interest Rate: A variable interest 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.

A variable-rate energy plan means the rate your pay for your electricity or natural gas supply may fluctuate from month to month. This monthly rate will be based on the current market prices that your energy supplier pays to obtain the natural gas and electricity it sells to you.

5 5 Conforming Arm Definition Adjustable Rate Mortgage An adjustable rate mortgage fixed Rate Mortgages vs. Adjustable Rate Mortgages – Fixed-Rate Mortgages vs. Adjustable-Rate Mortgages. Both fixed-rate mortgages and adjustable-rate mortgages have their advantages, but some studies have found that, over time, a borrower is likely to pay less interest overall with an adjustable-rate loan versus a fixed-rate loan.