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How is the variable interest rate on my private loan determined?

April 26, 2017Interest rate loan private

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How is the variable interest rate on my private loan determined?

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The variable interest rate is determined by a couple factors. One factor is the 3-month London Interbank Offered Rate (LIBOR) that changes quarterly plus the margin. The margin is determined primarily by the borrower’s credit profile or that of the borrower’s cosigner.