Fixed Interest RateA fixed interest rate is an interest rate that the borrower locks at the beginning of the loan. The interest rate does not change throughout the course of the loan.
Fixed interest rates on some forms of personal loans can actually be locked before the loan is even signed. Some lenders will allow a potential borrower to lock in a rate, and that is the rate they will receive if they get a loan through their company, even if the rate changes. The time frame that the fixed interest rate is locked is usually around thirty days. This can be a good way to ensure that you get a low interest rate on your loan if the market is heading up. The gamble when locking interest rates is that the interest rate could actually go down during the thirty days, and you must keep the higher interest rate that you locked in.
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