Interest rates

Piggy BankInterest rates can be fixed or variable.

Variable rates change with the prime rate and the bank’s rates, while a fixed rate stays the same for the life of the loan. Sometimes it pays to refinance a higher rate fixed loan into a lower interest loan if the interest rates go down.

When taking out a variable interest loan, applicants need to consider that their payments may change over time and should be able to adjust for it.

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