| what is the difference between a fixed rate and a variable rate |
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Melody
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im trying to get a load for about $8,000 but l dont know if a fixed rate is a good choice. help!
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beert394
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Yes most loans are fixed rate and for a loan that small it would be the best way. A variable rate can be like a credit card where they change it at will or like an ARM mortgage where it is tied to an index with a margin.
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Starnr
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A fixed rate means the interest rate will stay the same throughout the life of the loan. A variable rate loan will go up or down periodically during the life of the loan based on an index. Beware of variable loans with a teaser starting rate, they can go up even if the index stays the same or goes down.
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