Fixed Rate Loan

This is the kind of loan where the interest rate does not fluctuate during the entire term of the loan. Typically these loans have higher original interest rates than say a variable or adjustable rate loan because the lender is taking on more risk, in that their cost of money may rise during the life of the loan. Fixed rate loans give the borrower the the comfort and assurance that their monthly payment will stay the same for as long as they have the loan.