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.
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References in periodicals archive ?
And the Clydesdale and Yorkshire banks lowered their three-year fixed-rates with a five per cent deposit to 5.49 per cent, or 4.49 per cent with a 10 per cent deposit, both with no arrangement fee.
MORTGAGE rates have been falling, but should you lock into a fixed-rate deal now...
Several lenders have now slashed their mortgages again, with many cutting fixed-rate deals, especially for those with smaller deposits.
Last week Abbey upped its rates on a range of two and five-year deals by 0.2%, taking their fixed-rates up by 0.25%.
LENDERS are continuing to raise the cost of fixed-rate mortgages ahead of a further base rate hike expected next week.
It comes after all of the 10 leading mortgage providers increased the cost of their fixed-rate products following the last interest rate hike.
The gap between fixed-rates and ARMs grew again from 1990 to 1993, once again approaching 3 percentage points, as the Fed aggressively eased monetary policy, driving down short-term rates.
Fixed-rates moved up nearly 2 percentage points in the first haft of this year, scuttling households' plans when they couldn't qualify; after all, on a $100,000 home loan, two points of interest translate into nearly $150 a month.
Halifax have raised the cost of half of their fixed-rate products by up to 0.5 per cent, while five of their trackers have been increased by 0.3 per cent.
Lloyds TSB have also increased fixed-rate deals, raising them by 0.3 per cent, to give a two-year, fixed-rate mortgage of 6.44 per cent for people borrowing 75 per cent of their home's value, rising to 6.75 per cent for people borrowing 90 per cent.
Fixed-rate mortgages continued to strongly dominate the refinance market during the third quarter of 2007 even as many homeowners who had flirted with adjustable-rate mortgages refinanced back into a fixed-rate loan, according to a survey by Freddie Mac.
"Mortgage rates on 30-year, fixed-rate, conventional conforming loans became more favorable during the third quarter after topping out at 6.7 percent in July," said Amy Crews Cutts, deputy chief economist for Freddie Mac.