Fixed home loans have an interest rate that is fixed for a set period of time – often 1, 3 or 5 years. At the end of the fixed rate term, the loan will.
Loans usually have fixed interest rates. This means that if you take out a loan with a 5% interest rate, that rate will not change during the life of the loan. On the other hand, many lines of credit have variable rates , which are normally based on the Wall Street Journal Prime Rate plus some margin.
Although there’s no way to know for sure when or if this will happen, fixed-rate loans tend to be the better long-term option. interest rates are rising — To be honest, there’s no way for most of us.
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