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.
References in classic literature ?
It will readily be understood that the fluctuations in the value of money and in the state of society rendered a fixed rate of compensation in the Constitution inadmissible.
In the first place, none of them should have any property of his own beyond what is absolutely necessary; neither should they have a private house or store closed against any one who has a mind to enter; their provisions should be only such as are required by trained warriors, who are men of temperance and courage; they should agree to receive from the citizens a fixed rate of pay, enough to meet the expenses of the year and no more; and they will go and live together like soldiers in a camp.
Some of the better, fixed rates available A TWO-YEAR FIXED RATE: THE lowest fixed rates available at the moment are short term.
A Three Year Fixed Rate: The lowest three year fixed rates have reduced significantly and now start at just 2.
Lenders Abbey and Alliance & Leicester both said they were launching market-leading five-year fixed rates of 3.
For example, the swap is a widely accepted method of converting floating-rate loans to fixed rates.
Among the refinancing transactions studied in the survey, slightly more than 80 percent of the original loans had fixed rates (table 5), roughly the same proportion of FRMs as among all mortgages surveyed.
Fixed rates are available over pretty much any term, from a year or so right up to 25years.
One of the biggest problems with fixed rates has generally been that the penalties if you redeem the mortgage have been quite high and last for the full term of the mortgage.
125 percent from 8 percent, while 30-year fixed rates increased from 8.
So it seems like a good time to take advantage of the competitive fixed rate deals that are out there.
In terms of loan preferences, The Manhattan Mortgage Company survey reported that 32% of co-op/condominium borrowers chose five-year adjustable rate mortgages in February while 30-year fixed rate mortgages accounted for 38% of the marketplace.