Variable rate mortgage in economics and finance

Hello everyone! Welcome to this educational video on variable rate mortgage. A variable rate mortgage, also known as an adjustable rate mortgage, is a type of loan where the interest rate is not fixed but fluctuates over time. Unlike a fixed rate mortgage, where the interest remains constant throughout the loan term, a variable rate mortgage offers a rate that can change periodically, usually based on a reference rate such as the prime rate or the London Interbank Offered Rate (LIBOR).