Variable Rate

A variable rate moves with a market benchmark or the lender's own rate — so your monthly payment can rise or fall over the term.

Variable rates often start lower than fixed rates but carry uncertainty: if the benchmark rises, so does your payment. Reviewing the rate structure of any offer — including when fixed periods end — matters before committing.

A borrower on a variable rate sees the monthly payment adjust when the underlying benchmark changes, and budgets for that possibility.