fixed-rate loan

fixed-rate loan definition - business

fixed-rate loan

A loan with an interest rate that does not fluctuate during the term of the loan. For example, a family might purchase a home with proceeds from a 15-year fixed-rate loan. Choosing a loan with a fixed rate protects a borrower from rising payments or a longer term. Compare adjustable-rate mortgage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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