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What is FIXED rate?

April 26, 2017fixed rate

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What is FIXED rate?

1 Answer

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The rate is static for a set period of time, usually a number of years. Once this period has ended, the rate goes back to the lender’s variable rate. Even though you can usually choose the length of the fixed period, the selection will be limited to current offers. There are often redemption penalties on these rates if you wish to repay the loan before the fixed rate is up and occasionally a short time after.