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What's the difference between a fixed rate and variable rate loan?
What's the difference between a fixed rate and variable rate loan?
Tanya Menendez avatar
Written by Tanya Menendez
Updated over a week ago

An interest rate that is "fixed" does not change over time.  A "variable" interest rate changes over time based on changes in a market benchmark rate.  

If the market benchmark rate increases, your rate will also increase and if it decreases, your rate will also decrease.

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