Muutuvintressimääraga

Muutuvintressimääraga refers to a variable interest rate, commonly associated with loans and mortgages. Unlike fixed-rate loans where the interest rate remains constant for the entire loan term, a loan with a variable interest rate can fluctuate over time. This fluctuation is typically tied to a benchmark interest rate, such as a central bank's policy rate or a market index like EURIBOR.

When the benchmark rate changes, the interest rate on the loan also adjusts, usually after a predetermined period. This means that the borrower's monthly payments can increase or decrease depending on the movement of the benchmark rate. If the benchmark rate rises, the interest rate on the loan will increase, leading to higher monthly payments. Conversely, if the benchmark rate falls, the interest rate will decrease, resulting in lower monthly payments.

Loans with variable interest rates often start with a lower initial interest rate compared to fixed-rate loans. This can make them attractive to borrowers who anticipate interest rates falling or who are comfortable with the risk of payment fluctuations. However, borrowers should be aware of the potential for increased costs if interest rates rise significantly over the life of the loan. The terms and conditions of a variable interest rate loan, including how and when the rate adjusts, are detailed in the loan agreement.