If you opt for a private student loan, or if you refinance your existing student loans through a private lender, you can typically choose a fixed or variable rate. Here's how to decide between them: Fixed student loan rates are the safer bet Fixed rates are locked in for the life of ...
Variable-rate loans have interest rates that can change over the life of the loan. Often, there’s an initial introductory period when the rate stays the same. After that, the rate can change on a set schedule, such as monthly, quarterly, or annually, as outlined in the contract. The l...
A variable-rate loan isn’t really a type of loan or line of credit in the same way that amortgage, student loan, credit card, orauto loanis. Those are specific types of loans designed for specific purposes. “Variable-rate” simply describes how interest accrues on the loan balance. If...
These loans can have either fixed or variable rates, so if your loan is transferred to another lender and you have a variable rate, you could see your rates increase or decrease. Unlike federal student loans, which are assigned to a randomly selected servicer, with a private loan, you have...
If rates fall, you must refinance or live with your higher rate May not compare well for short-term needs If you’re having trouble choosing, you might benefit from a hybrid of fixed- and variable-rate loans. For example, afive-year, adjustable-rate mortgage (ARM)has a relatively low fi...
Payments typically extend from 10 to 30 years and can be structured as variable or fixed-rate loans. Like an auto loan, if payments are not made, the lender has the right to repossess the property, based on the details laid out in your loan agreement. Student loans –Student loans are ...
Fixed vs. Variable Interest Rates A 2.5% fixed-rate loan is better then a 2.5% variable-rate loan. The security of knowing the interest rate will never go up is valuable. This is especially true for long-term loans. If you are going to repay your loans quickly, it might make sense to...
Whereas federal student loans come with fixed rates, private lenders often offer both fixed and variable interest rates. If you're a private student loan borrower, check to see what kind of rate you have. For those with variable rates, the Fed's current pause on its benchmark rate means ...
Banks may charge a fixed or variable rate. A fixed rate will stay the same over the life of the loan. Conventional mortgages, auto loans, and many student loans are fixed. Variable rate loans are tied to a benchmark, such as a bank’s prime lending rate—the lowest rate banks lend to...
Young adults whose parents incurred private student loan debt or cosigned a loan for them.Young adults without dependents rarely need life insurance, but if a parent will be on the hook for a child’s debt after their death, the child may want to carry enough life insurance to pay off th...