Adjustable Rate Loan
/ˈædʒəstəbl reɪt loʊn/
Definitions
- (n.) A loan with an interest rate that adjusts periodically based on a specific benchmark or index.
The borrower secured an adjustable rate loan that resets annually according to the prime rate.
Forms
- adjustable rate loan
- adjustable rate loans
Related terms
See also
Commentary
Adjustable rate loans require careful disclosure of adjustment terms to comply with consumer protection laws.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.