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I'll never understand variable interest rates

Date: Thu, 01/01/2009 - 08:23

Submitted by drjonah
on Thu, 01/01/2009 - 08:23

Posts: 244 Credits: [Donate]

Total Replies: 4

I'll never understand variable interest rates


It baffles me how they are calculated. Last year I had 4 loans at 7.42% and 2 loans at 5%.

Now that it's 2009, the 4 loans went UP to 7.75% yet 2 loans went DOWN, one went down to 4.25% and another all the way down to 3.25%.

How are variable interest rates calculated?