Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR.
Loan made at an interest rate that fluctuates based on a base interest rate such as the Prime Rate or LIBOR. 
A note that is payable on demand and bears interest tied to a money market rate.
- Loan whose interest rate changes over its life in relation to the level of an index.
A loan with interest rate changes tied to the market rate - You benefit from lower monthly payments when the market rate is down, but the rates can go up and your payments can increase.