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Fixed Interest Rate

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Fixed Interest Rate
An interest rate that does not change over the life of a loan or other form of credit. If one borrows money at a fixed interest rate of 10%, then 10% is calculated over the principal balance each time the interest compounds. A fixed interest rate differs from a variable interest rate, which may change, at least within certain parameters. Most home mortgages in the United States have fixed interest rates. It is also called simply a fixed rate.


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2) Fixed interest rate: Fixed interest rate is crucial for a long term financial planning.
17 percent fixed interest rate and a loan-to-value of 62 percent.
The loan term is seven years at a fixed interest rate of 7.
 
 
 
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