Fixed Interest Rates

Definition

Fixed interest rates refer to an interest rate that remains constant over a specified period of time, regardless of any changes in the market. It provides borrowers with stability and predictability in their loan repayments.

Related terms

Variable Interest Rates: Variable interest rates are interest rates that can change over time based on fluctuations in the market. They offer flexibility but also uncertainty as borrowers' monthly payments can vary.

Prime Rate: The prime rate is the benchmark interest rate that banks charge their most creditworthy customers. It serves as a reference point for other lending rates.

Mortgage Rate: A mortgage rate is the interest rate charged by lenders on home loans. It determines the cost of borrowing money to purchase a house.