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fixed-rate loan |
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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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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