fixed-rate loan

Fixed-rate loan

A loan whose rate is fixed for the life of the loan.

Fixed Rate Loan

A loan with an interest rate that does not change over the life of the loan. For example, if one borrows money at a fixed interest rate of 10%, then 10% is amortized over the maturity of the loan and thus payments never change. 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 are fixed rate loans.

fixed-rate loan

A certain percentage rate of interest that will not change over the life of the loan. Contrast with adjustable-rate loan or mortgage.

References in periodicals archive ?
6 million fixed-rate loan from Investors, which participated in the financing of a 128,599 s/f, office building in Hauppauge, N.
The bank's loan counsellor I talked to last year recommended a fixed-rate loan for my rental house.
They had 37 percent of the nation's prime fixed-rate loan foreclosure starts and 67 percent of the prime ARM [adjustable-rate mortgage] foreclosure starts.
The average cost of a two-year fixed-rate loan has risen to 7.
Data for February shows that 87% of first-time buyers chose a fixed-rate loan - up from the previous record of 84% in January, and 82% in the same month last year.
The fixed-rate loan statistics and the other background information for this article have given us a broader basis for estimating the extent to which the public hedges against interest rate increases through fixed-rate loans.
Those with existing ARMs who are trying to decide whether to convert to a fixed-rate loan should tally up conversion lees (which vary) and any prepayment penalties and closing costs, and compare the total to the maximum possible increase in monthly payments they'd be subject to if they kept the ARM for the remainder of the time they plan to be in the home.
This alternative offers you protection against rising rates with future flexibility to convert back to other financing options with a less onerous prepayment penalty than the traditional fixed-rate loan.
But the growth of adjustable-rate financing in the past decade has multiplied the possibile configurations a refinancing can have: A homeowner can also move from a fixed-rate loan to an adjustable one, from an adjustable to a fixed, or from one adjustable-rate loan to another.
A $1,500,000 25-year fixed-rate loan for the purchase of a 13,000 s/f apartment building in which 2,500 s/f is retail.
His decision: to refinance the remaining $450,000 on his 30-year, fixed-rate loan with a 7.

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