This is where the interest rate is set at an agreed level over a specified term of months or years. During the specified term, regardless of whether interest rates rise or fall, a fixed interest rate will remain static.
A specific rate of interest for a set length of time. Most commonly this is for between one and five years though it can be as long as ten years. As a rule the longer the fixed period the higher the starting rate of interest. A lender will not want to commit to lending you money at a really low interest rate for ten years when there is a fair chance that during that period the general level of interest rates may rise above the rate at which they are lending you money. The lowest interest rates are often found with deals that are fixed for two to three years.
A credit with a fixed interest for the period of the loan can be chosen. A fixed rate will give you the security of knowing that the interest will never change during the term of the loan. This means that the fees are agreed beforehand and are immovable without whatever happens micro- or macro-economically in the context having any importance.
Some lenders will offer a fixed rate for an initial period. During this period, if interest rates fluctuate, either by going down, or going up, your repayment would remain the same. Once the fixed period has ended, the loan will usually revert back to the lenders standard variable rate.
A set rate of interest charged on a mortgage or other loan. At the start of a loan it is normally set just below the lender's usual rate and guaranteed for a certain length of time. Whether the usual rate falls below or rises above the fixed rate, you will still have to pay the same amount - so you could lose, or gain. At the end of the guarantee period, you will start paying the lender's usual rate. Sometimes this type of deal also involves paying a penalty if the mortgage or loan is redeemed (paid off) during or at the end of the discounted period.
A flat rate purchase price for Wholesale License Agreements available to all Affiliates. After an Affiliate has 10 cumulative wholesale purchases, they have a fixed rate of purchase at $13.00 per Wholesale License Agreement, regardless of quantity purchased and when. After 25 cumulative wholesale purchases, they have a fixed rate of $12.00 each. After 50 wholesale purchases, they have a fixed rate of $11.00 each. And, after 100 or more cumulative wholesale purchases, they have a fixed rate of $10.00 each.
The interest rate is fixed for a period of time, i.e. 5 years. Whether interest rates fall or rise, with a fixed rate the payment would remain the same. Often lenders will at the end of a fixed rate, tie you to the lender for a further period, known as the redemption period.
A traditional means of determining the finance charge on a loan. The rate is determined, is applied to the principal of the loan and remains the same for the life of the loan. Fixed rates generally apply to closed-end loans.
Many banks and building societies offer mortgages which are fixed to a certain rate for an agreed period of time. This means that if the "standard variable rate" goes up then the repayments will still stay the same. However, if the standard variable rate goes below the fixed rate then no savings will be offered. It is a good way of budgeting for the initial term of the mortgage after which the prevailing standard variable rate will apply. You must however consider the total cost of the package to ensure that you are not paying over the odds in the long term.
A fixed annual percentage rate. A fixed APR does not change but rather stays the same for a specified period of time. This differs from a credit card with an "intro APR." An intro APR is a temporary, low APR that changes to a higher rate after the introductory period (typically 3-12 months).
This applies to mortgages where the interest rate is fixed and is not affected by inflation, or deflation, and is for an agreed period of time. Most fixed rate loans can be taken out over a 1, 2, 3, 4, 5, 7, or 10-year period and the interest rate offered to you at the time of applying for the loan will remain 'fixed'.
With a fixed rate mortgage, the interest rate is set at the time the mortgage is initiated and is constant throughout the term. The fixed rate option is less riskier than an adjustable rate, unless the interest rates fall. In that case, the borrower always has the option of refinancing their mortgage.
The lender will fix the interest rate that they charge at a set level for a fixed period of time. There are normally a whole range of fixed rate products available from different lenders and these vary in terms from very short periods (3 - 6 months) up to the whole 25 year mortgage term. The lender will normally charge early redemption penalties if the mortgage is redeemed within the fixed rate period and often beyond the initial period (See Redemption Penalties ).
A rate of mortgage interest which is set, or â€˜fixedâ€(tm), at a certain level for a given period of time. For example, the rate might be fixed at 6% for 2 years, which means that the rate of interest charged during that period will always be 6%, no matter what happens to interest rates generally.
Regardless of whether variable home loan rates fall or rise, the fixed interest rate for the agreed period will continue to apply. This facility would be taken up if the borrower is of the view that interest rates are rising and may do so during the contracted period. Should this option be terminated before the expiry date an additional finance charge will be levied by the lender. Once the fixed rate period has expired, you may negotiate a new rate with the lender.
The rate is fixed for a specific number of years, so you know exactly what your payments will be over that period. Following this period, the rate will usually return to the lender's standard variable rate.
An interest rate that applies to a loan for a set term. Both the interest rate and loan repayments are fixed for the agreed term, regardless of any interest rate variations in the home loan market. The agree term is usually 1, 2 ,3, 4 or 5 years.
A mortgage with a fixed rate of interest for a set period, such as 3, 5 or even 10 years, after which you will usually convert to the lenderâ€™s standard variable rate. Tie-ins often apply, so itâ€™s worth checking how long you will be `tiedâ€™ to the lender after the fixed rate period. Fixed rates are ideal for those who monitor their finances closely and like to be able to budget accordingly. Early repayment charges may apply.
A guaranteed rate that is normally set just below the standard variable rate and is guaranteed for a certain period of time. If the standard variable rate falls below the fixed rate you will still have to pay the fixed rate. Once the fixed rate period ends you will normally pay the lender's variable rate. Sometimes there are redemption penalties associated with this type of deal.
A fixed loan interest rate option for variable and increasing whole life plans. The Northwestern Mutual policyowner can switch between the fixed loan interest rate (currently 8%) and a variable rate. Change requests must be in put in writing and become effective the following January 1st.
Type of loan in which the interest rate does not fluctuate with general market conditions. There are fixed rate mortgages as well as fixed rate business and consumer loans. Fixed rate loans tend to have higher original interest rates than flexible rate loans because lenders are not protected against a rise in the cost of money when they make a fixed rate loan.
A traditional approach to determining the finance charge payable on an extension of credit. A predetermined rate of interest is set on the principal (the amount you borrow) and does not change during the life of the loan.
Generally you are able to lock in a rate from 6 months to 10 years. Your interest rate and repayments are locked in during the fixed term. Heavy break fees may apply should you wish to exit the fixed rate before the end of the chosen term.
A common foreign exchange term describing a currency's exchange rate which is determined by the government or central bank. The rate of exchange does not fluctuate with the market and is only traded at the official rate. Often a country will fix its rate to a strong currency.
An interest rate that does not vary during the term of a loan, with the exception of defaulting on the contract, at which point the interest rate may increase. Fluctuation of the prime rate and LIBOR rates do not have any effect on this type of rate.
A Fixed Rate Mortgage means that the interest rate is set for an agreed period of time (the Fixed Rate term). During this term the rate will not change. So it will not go up or down. This will help you to budget your monthly outgoings.
A loan where the initial payments are based on a certain interest rate for a stated period; the rate payable will not change during this period, regardless of changes in the lender's standard variable rate