What is a fixed interest rate?
Fixed interest rate: A fixed interest rate stays the same for the life of a loan, so your interest rate, and usually your monthly payment, does not change.
Most personal loans and home equity loans have fixed rates. A fixed rate makes payments predictable and protects you if market rates rise.
If market rates fall, a fixed rate does not drop with them, though you may be able to refinance.
When you compare offers
When you compare a fixed-rate offer with a variable-rate one, consider how much payment certainty matters to you.
Related guides
- Fixed vs. Variable Rates When Refinancing Student Loans
How fixed and variable rates work on a student loan refinance, the trade-offs of each, and the questions worth asking before you choose — plus what refinancing federal loans gives up.
- Comparing Offers: APR, Fees and Term
A plain-language guide to the three numbers that matter most when comparing loan or credit offers — APR, fees and term length.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.