variable rate


Any interest rate or dividend that changes on a periodic basis. Variable rates are often used for convertibles, mortgages, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. also called adjustable rate.

Use variable rate in a sentence

The variable rate was changing very rapidly and things were a lot different than they had been in the past before.

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Because of the real estate bubble, the variable rate on my mortgage fluctuated drastically despite my best efforts to keep up.

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The variable rate nature of the contract made our attorney advise against it because the possibility of excessive liabilities was possible.

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universal life variable-rate certificate of deposit