Fixed-Rate Loan: A loan with the same rate of interest for the life of the loan. Until the late 1970s and early 1980s, the fixed-rate loan was the predominant real estate loan. With the arrival of highly volatile interest rates, lenders attempted to adjust interest rates with a variety of new and different loans. As the quasi-governmental agencies changed their guidelines, establishing a marketplace for these new adjustable-rate loans, the fixed-rate loan has been seen less and less in the real estate market of the 1980s. In the 1990s the fixed-rate loan dominates once again.
Real Estate Word of the Day: Fixed-Rate Loan
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