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Financial glossary

Fixed-Rate Loan

In plain English

A loan whose stated interest rate stays the same for the agreed term, making scheduled principal-and-interest payments predictable.

A fixed-rate loan keeps its stated interest rate unchanged for the agreed term. The scheduled principal-and-interest payment is therefore predictable, although taxes, insurance, or fees can still change. A fixed home equity loan can be compared with a variable HELOC using the home equity calculator.

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