A "Variable-Rate" refers to an interest rate that can change over time, typically in relation to a benchmark rate, such as the Federal Reserve rate. This means that the payments on loans or credit products, like mortgages or credit cards, can fluctuate, potentially increasing or decreasing the total amount paid over the life of the loan. Variable-rate loans often start with lower initial rates compared to fixed-rate loans, making them attractive to borrowers. However, the uncertainty of future rate changes can lead to higher costs if interest rates rise, impacting monthly payments and overall financial planning.