Fixed Rate Loan
/ˈfɪkst reɪt loʊn/
Definitions
- (n.) A loan with an interest rate that remains constant over the life of the loan.
The borrower preferred a fixed rate loan to avoid fluctuations in monthly payments.
Forms
- fixed rate loan
- fixed rate loans
Related terms
See also
Commentary
A fixed rate loan offers predictable repayment amounts, which can aid in budgeting and reduce interest rate risk; loan agreements typically specify the fixed interest rate and its term.
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