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Glossary term

Fixed Interest Rate

Definition

A fixed interest rate stays the same the whole time you have the loan, so your payment doesn't change.

Technical definition

A fixed interest rate is a rate that remains constant over the loan term, producing consistent scheduled payments.

Why it matters

Fixed rates make budgeting predictable and protect against rising rates, though they may start higher than variable options.

Example

A land loan at a fixed rate keeps the same payment whether market rates rise or fall.

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