Skip to Content

Floating Rate

« Back to Glossary Index

Floating Rate is an interest rate that moves up and down with the rest of the market or along with an index.

It can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.

This contrasts with a fixed rate, in which the interest rate of a debt obligation stays constant for the duration of the loan's term. During mortgage application steps, the rate is floating until rate locked.

« Back to Glossary Index
Skip to content