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Is fixed interest rate better than variable interest rate for banks?
Wiki User
∙ 14y ago
Yes, because a variable interest rate can go up as high as 9% APR when you can get a fixed APR of 3.5%. Also with variable interest your payments will always jump around and with fixed your payments are what you sign.
Wiki User
∙ 14y ago
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Can you change from a variable loan to a fixed loan?
If agreed by the Bank/Loaner - fixed load has fixed interest
What are some of the best banks for fixed mortgages?
The best banks for fixed mortgages with low interest rates are Chelsea Building Society, Yorkshire BS, Postoffice, NatWest, RBS, HSBC and First Direct. All these banks have interest rates under 2%.
Do banks pay compound interest?
Yes & No. Some Banks usually pay interest that can be compounded every quarter on most fixed deposit plans. But, this is not applicable to all banks. Most banks still pay only simple interest on all deposit schemes.
What difference does interest rates being variable rather than fixed make to pension plans housing loans and other personal finances?
what difference does interest rates being variable rather then fixed have on pension plans or home loans
Are low interest loans better than high interest loans?
In general, a low interest loan is better than a high interest loan. The only time this may differ is if you are getting a variable rate loan, which may become lower than a higher fixed rate loan over time. However, this can be hard to predict, so it is always better to go with the low interest rate.
How can you change from fixed interest rate to variable interest rate before the contract period for fixed rate is over?
You will have to check with your loan supplier. they are the only people who can fully answer that question. Different banks have different rules.
Are fixed or variable interest rates for mortgages better?
For the average person, a fixed mortgage is better because you can budget for the same mortgage payment for the term or length of the mortgage. The only change would be if your insurance or taxes would go up. With variable interest rate, your mortgage could increase every year due to the increased interest rate.
How do you convert a variable interest rate to fixed?
If you want a variable interest rate to fixed, refinancing your home would be the way you can accomplish this. Variable rate also known as an adjustable rate mortgage should be refinanced before your interest rate adjust.
Can you change from a variable loan to a fixed loan?
If agreed by the Bank/Loaner - fixed load has fixed interest
Will you earn a higher interest rate with a variable annuity than with a fixed annuity?
Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.
Can I Increasingly Draw Down Business Loan With Fixed Interest Rate?
A business loan with variable rate of interest would better suit this purpose. You cannot increase the principal balance of the Business Loan having a fixed interest rate throughout the fixed rate of interest period. If several drawing is needed as the rates are fixed for time, break costs might be incurred.
How steep is the roth IRA interest rate?
An IRA interest rate usually depends on what kind you have variable or fixed interest.
Does ing variable annuities pay a higher interest than banks?
ING pay a high interest rate to those interested in their investment vehicles, as high as 9% interest rates for a single premium fixed annuity rate. They also offer flexible premiums at different interest rates.
What are some of the best banks for fixed mortgages?
The best banks for fixed mortgages with low interest rates are Chelsea Building Society, Yorkshire BS, Postoffice, NatWest, RBS, HSBC and First Direct. All these banks have interest rates under 2%.
Do bonds pay a variable interest rate monthly?
No, bonds pay a fixed amount of interest on a regular schedule.
How does a variable mortgage compare to a fixed rate one?
Variable mortgages are very similar to fixed mortgages, however they have interest rate that is prone to changing without notice. It is a risk that is taken by many people due to variable mortgages initial interest rate being cheap.
Is mortgage payment a variable cost?
Mortgage payment can either be fixed or variable cost. A fixed cost means the interest rate charged on the loan will remain the same for the loan's entire term. A variable cost means the interest rate changes or decreases as time pass.
