Fixed-rate loan

Fixed-rate Loan
A Fixed Rate Loan can be applied to any kind of loan, whether it be a personal loan, mortgage, long-term loan, car loan, secured or unsecured loan and so on.

Fixed-rate loan
A loan on which the rate paid by the borrower is fixed for the life of the loan.
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fixed-rate loan
type of loan in which the interest rate does not fluctuate with general market conditions. Examples include fixed-rate mortgage loans, also known as conventional mortgages, and consumer installment loans.

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Hedging Interest Rate Risk-Case Study and Strategies
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Fixed-Rate Loan
A mortgage in which the interest rate does not change during the entire term of the loan.

FIXED-RATE LOAN - A loan with the same rate of interest for the life of the loan.
FIXED-RATE LOANS - When you have a fixed-rate loan, it means that the initial interest rate you agreed ...

Fixed-Rate Loan - A loan on which the interest rate is set for the life of the loan.
Flexible Premium Deferred Annuity - An annuity for which additional premium payments may be accepted prior to annuitization.

Fixed-rate loans offered by the Ex-Im Bank directly to the foreign buyer to purchase US capital equipment and services.
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Fixed-rate loans offered by the Export-Import Bank directly to a foreign buyer to purchase US capital equipment and services.
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Fixed-rate loan
A loan whose rate is fixed for the life of the loan.
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A conventional fixed-rate loan is fully paid off over a given number of years-usually 15, 20, or 30. A portion of each monthly payment goes towards paying back the money borrowed, the "principal"; the rest is "interest."
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Direct Loan Program
Fixed-rate loans offered by the Ex-Im Bank directly to the foreign buyer to purchase US capital equipment and services.
DM
Deutsche marks, the former currency of Germany.

Rate risk In banking, the risk that profits may drop or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets.

This predetermined expense is one of a fixed-rate loan's most attractive features, since you always know exactly what your mortgage will cost you. If interest rates rise, a fixed-rate mortgage works in your favor.

On a fixed-rate loan, the interest rate that is agreed to at the start of the loan will remain the same through the time span of the loan.

An ARM for which the borrower has the option to convert from a floating-rate loan to a fixed-rate loan. Convertible ARMs can typically be converted in the first through fifth years of the mortgage loan.

Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.
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Conversion Clause: a provision in some ARMs allowing it to change to a fixed-rate loan at some point during the term. Usually conversions are allowed at the end of the first adjustment period.

In banking, the risk that profits may decline or losses occur because a rise in interest rates forces up the cost of funding fixed-rate loans or other fixed-rate assets.
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There's also another type of loan called a balloon loan, which works as a fixed-rate loan for a stated period (say ten years) and then requires that you pay the remaining principal off in one balloon payment.

You may want to know more about the home mortgage loan if buying a home in future is part of your planning for future. There are generally two categories of mortgage loans namely fixed-rate loan and adjustable-rate loan.

A traditional approach to determining the finance charge payable on an extension of credit. A predetermined and certain rate of interest is applied to the principal.
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For instance, a company with a variable-rate liability may opt for a swap with another borrower who has raised a fixed-rate loan. Thus, the difference in the two interest payments would be exchanged.

Hope for Homeowners will offer nearly $4 billion in aid to homeowners who are behind on their mortgages to refinance into a fixed-rate loan charging a reasonable rate of interest. These loans are backed by the FHA.

mixed economic indicators and a clouded job market have actually driven mortgage rates down, although he cautions that window will likely be short and mortgage rates are expected to rise throughout the year. The average for a 30-year fixed-rate loan ...

Even if you have a fixed-rate loan and pay off your credit cards each month, an rising LIBOR will make all types of consumer and business loans more expensive. This reduces liquidity, slowing economic growth and creating unemployment.

See also: Funding, Overnight, Banks, Counterparty, Expense