Topic summary
Fixed interest
Extracted from the Wikipedia article Fixed interest rate loan.
A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. During this fixed-rate period, the borrower’s interest payments do not change, allowing future repayments to be predicted with a high degree of certainty. Variable rate loans, by contrast, are anchored to the prevailing discount rate. A fixed interest rate is a specific, fixed interest tied to a loan or a that must be repaid, along with the principal.