fbpx

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