Fixed rate

Fixed rate

A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal.

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.
For SSC units at 75% LTV, highlights from the refreshed portfolio switch product range include a two-year fixed rate mortgage at 3.55% with a 0.50% product fee and a five-year fixed rate mortgage at 3.80% with a nil product fee.
Capital One Financial Corporation (NYSE: COF) has said that it has declared quarterly cash dividends on its various series of outstanding fixed rate non-cumulative perpetual preferred stock.
All new fixed rate offers from 1 to 5 years with a loan to value (LTV) up to 80% are between 3.35% and 3.45%.
According to Moneyfacts.co.uk, the average two-year fixed rate for a buyer with a 10 per cent deposit was 5.44 per cent a year ago and 5.30 per cent six months ago.
Some of the better, fixed rates available over various terms: A TWO YEAR FIXED RATE: The lowest fixed rates available at the moment are over two years and Tesco Bank has a very competitive rate of 1.99 per cent fixed until 31/12/2014 followed by the standard variable rate, currently 4.24 per cent.
A Three Year Fixed Rate: The lowest three year fixed rates have reduced significantly and now start at just 2.88 per cent.
Between 2005 and 2009 fixed rate mortgages were overwhelmingly the most popular type of product, accounting for 64 per cent of all mortgages sold in Britain.