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Variable Rate

Search definitions        Search   Variable Rate A variable rate agreement, as distinguished from a Fixed Rate agreement, calls for an Interest rate that may fluctuate over the life of the loan.      The rate is often tied to an index that reflects changes in market rates of Interest. A fluctuation in the rate causes changes in either the payments or the length of the loan term. Limits are often placed on the degree to which the Interest rate or the payments can vary. Posted by  Privatebanking.com     Back     Print     Email

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