When you apply for a personal loan or credit card, the lender may give you a choice between a fixed rate vs. variable rate. Each of these options comes with pros and cons, and your selection can impact how much interest you’ll pay over the life of your
Mortgages aren’t one-size-fits-all. Here’s what you need to know about fixed vs. variable rate mortgages, so you can pick the one that’s right for you.
A fixed rate mortgage is a home loan for which the interest rate is kept the same for an agreed amount of time. The maximum length of time for which a mortgage can be fixed in Ireland is ten years. Okay, so what is a variable rate mortgage then? Variable rate mortgages are mortgages ...
A fixed-interest CD offers the security of a guaranteed, predictable return. You know precisely how much you'll earn, when you'll earn it, and you're shielded from interest rate changes that could decrease your earnings. In addition, fixed-rate accounts often have higher APYs than variable-...
Deposit Interest Rate: Definition, Fixed Vs. Variable Welcome to our “Finance” category, where we cover a wide range of topics to help you make informed decisions about your financial future. In today’s post, we will be diving into the world of deposit interest rates and the key differen...
Variable rate APRs can be more cost-effective, but costs can increase when interest rate benchmarks move up. When it comes to credit – whether in the form of a loan or a credit card – there’s a key term to familiarize yourself with: the annual percentage rate, or APR. There are ...
There is no right or wrong answer when it comes to choosing between fixed rate vs variable rate mortgage loans. As mentioned above, it really depends on the economy, your life goals, and your current financial circumstances. Here’s a quick summary and breakdown of the main pros and cons ...
Variable-rate mortgages are usually more competitive. As the economy grows and interest rates rise further, the amount of interest paid on your mortgage will continue to rise, which could potentially extend the total amount of time it takes you to pay-off your mortgage. Making the choice So,...
A popular type of variable rate loan is a 5/1 adjustable-rate mortgage (ARM), which maintains a fixed interest rate for the first five years of the loan and then adjusts the interest rate after the five years are up. Variable Interest Rate Loans ...
Fixed vs. Variable Interest Rates Variable interest rateson ARMs change periodically. A borrower typically receives an introductory rate for a set period of time—often for one, three, or five years. The rate adjusts on a periodic basis after that point. Such adjustments don’t occur with a...