Fixed Rate

What is a Fixed Rate loan?

A fixed rate loan is a loan that the interest rate doesn't change over the period that the fixed rate is applied.

Is a fixed rate loan better?

A fixed rate loan is generally a safer option which is set for a period of time where the loan can't change.

What is the standard home loan?

Fixed rate loans are the most popular in the United States and a generally fixed for 15 and 30 years but outside the period they are fixed for is a lot lower.

What are the advantages of a fixed rate loan?

If the interest rate rises while the borrower has a lower rate locked in then the borrower pays less interest

What are the disadvantage of a fixed rate loan?

Fixed rate loans are generally more expensive then other types of loans and if the interest rate drops lower then the rate the borrower has locked in they pay more for that period