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Fixed Interest Rate
(redirected from Fixed Interest Rates)

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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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Is it wise to take loans on the variable or fixed interest rates because of speculation on bottoming out of interest rates?
Typically fixed interest rates are higher than the corresponding tracker or discount variable rate products offered.
Considering that currently interest rates are fluctuating around seven percent in one-week repurchase agreement auctions, the bank decided to hold the auctions with fixed interest rates from now on; in order to prevent the fluctuations,' the bank said.
 
 
 
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