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What is the advantage of a variable-interest Borrower can capitalize on a reference rate decrease Reduces the total interest payments Protects the borrower from rising interest rates Makes it easier for
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What is the advantage of a variable-interest

Borrower can capitalize on a reference rate decrease

Reduces the total interest payments

Protects the borrower from rising interest rates

Makes it easier for the borrower to plan for future payments

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User Wayner
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A variable rate loan can result in a lower payment in the short-term but carries a risk that the rate could rise during the long-term and produce significantly higher payments.
User Draw
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