A ______ loan will likely have a lower interest rate at first, but can go up or down.

Question

Quizplus · Accepted Answer

A variable loan has an interest rate that can change over time based on market conditions, whereas a fixed loan has a set interest rate for the entire loan term. A variable loan may have a lower interest rate at the beginning, but it can increase (or decrease) based on market fluctuations. However, if interest rates remain low or decrease, a variable loan could end up being the more affordable option overall.

A ______ Loan Will Likely Have a Lower Interest Rate