A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, the most common index rate is the:

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The London Interbank Offered Rate (LIBOR) is the most common index rate used for income-producing property mortgages with adjustable interest rates. It is an interest rate that banks charge each other for loans, and its fluctuation makes it a useful benchmark for mortgage interest rates.

A Significant Number of Mortgage Loans Use Adjustable Interest Rates