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If you like understanding what your rate of interest and payment is going to be through the existence of the loan, you should think about a set rate loan. In comparison, a flexible rate of interest loan could give you a lesser rate and payment amount initially, using the chance the rate and payment may rise or fall later on.
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∙ 8y ago
Norjannah Cadar
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Why should a student look into a fixed rate student loan?
A student should look into a fixed rate student loan in case the rate is lower than the variable rate. If it is lower, it is best to take the fixed rate. That way, if the variable rate goes up later on, you'll still get that lower, fixed rate.
What is the difference between a fixed second mortgage and one with a variable rate?
The difference between a fixed second mortgage and one with a variable rate is that fixed second mortgage has a fixed rate and is commonly thought of as safer than a mortgage with a variable rate.
What if you have electricity as a flat rate for the month is it a fixed or variable?
Flat rate = fixed.
What is the difference between fix and variable mortgages?
The difference between fixed and variable mortgages are that in a fixed mortgage, the rate can not change. In a variable mortgage, the rate changes with time.
How can one sort through variable rate mortgages?
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
What is the difference between A variable rate home loan and a fixed rate home loan?
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.
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.
Which is the best variable or fixed personal loans?
Fixed rate loans are ideal if you want the security of knowing that your interest rate, and therefore your monthly repayments, will remain the same for the life of the loan.
Is fixed interest rate better than variable interest rate for banks?
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.
In considering the best interest rates to accept what should you know about the risks?
Make sure you only borrow as much as you need, and no more. Make sure you know whether the rate has a variable or fixed rate. A fixed rate stays constant, but a variable rate changes with the economy. If you choose a variable rate be aware that it may increase significantly, which will increase your monthly payment, which should be considered in a budget.
Where can one find some best rate mortgages?
The way for somebody to find the best rate for a mortgage would be simply by shopping around. Make sure that when comparing interest rates, though, to always compare fixed rates to other fixed rates and variable rates to other variable rates.
Which costs may have both variable and fixed components?
Labor. Fixed rate for hours planned; variable rates for unscheduled overtime.
