adjustable-rate loans

Definition of "adjustable-rate loans"
  1. A type of loan with an interest rate that changes over time in line with market conditions, but within set minimum and maximum rates. These loans typically start with a lower interest rate than fixed-rate loans, but payments can increase or decrease as rates rise or fall
How to use "adjustable-rate loans" in a sentence
  1. The benefit of adjustable-rate loans is generally lower initial payments.
  2. With adjustable-rate loans, changing market conditions can result in fluctuating monthly payments.
  3. Loanees should be aware that adjustable-rate loans can have both minimum and maximum rates.

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