Variable Rate
Lending & MortgagesAn interest rate that changes periodically based on a benchmark index, making payments unpredictable.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding variable rate helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how variable rate impacts your specific situation.