Question

a mortgagge loan in which the interest rate charged fluctuates with the level of current interest rates is called

Answer 1

Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.

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 is interest rates subject to Variable interest rate regular changes is known as a variable interest rate (also known as an "adjustable" or "floating" rate).

A variable interest rate has the obvious advantage that if the underlying rate or index decreases, so do the borrower's interest payments. On the interest rates other hand, if the underlying index increases, interest payments rise. Fixed interest rates are stable, as opposed to variable interest rates.

Variable interest rate mortgage loans have an interest rate that varies depending on the level of current interest rates.

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