LENDING GLOSSARY
Fixed Rate
Fixed Interest Rate
An interest rate that remains unchanged for a defined period.
What does Fixed Rate mean?
An interest rate that remains unchanged for a defined period. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Fixed Rate in context
A five-year fixed-rate loan keeps the same contractual rate during those five years.
Why it matters in financing
Fixed Rate can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related lending terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.