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Locked Interest

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A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast, are anchored to the prevailing discount rate.

A fixed interest rate is based on the lender's assumptions about the average discount rate over the fixed rate period. For example, when the discount rate is historically low, fixed rates are normally higher than variable rates because interest rates are more likely to rise during the fixed rate period. Conversely, when interest rates are historically high, lenders normally offer a discount to borrowers to fix their interest rate over time, as rates are more likely to fall during the fixed rate period.

Some fixed interest loans - particularly mortgages intended for the use of people with previous adverse credit - have an 'extended overhang', that is to say that once the initial fixed rate period is over, the person taking out the loan is tied into it for a further extended period at a higher interest rate before they are able to redeem it.

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Categories: Interest rates | Financial economics | Financial terminology |

From Wikipedia under the GNU Free Documentation License
Wed Dec 14 04:45:28 2011


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1 min., 46 sec.
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What is a Traditional Fixed Annuity - Tammy Mitchell

Thu, 14 Jul 2011 08:28:48 PDT

A fixed annuity provides a locked-in, guaranteed rate of interest on the premiums paid and fixed, stable income in its payout phose.


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Joe's Fan Interest [Chapter 15]

Wed, 26 Aug 2009 17:53:55 PDT

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Tue Nov 22 06:59:29 2011

I have locked in my interest rate on a 30 yr fixed rate with no points. Can I still buy points down?
Q.
Asked by J.P. - Sat Jan 26 11:40:40 2008 - Renting & Real Estate - 1 Answers - Comments

A. You may be able to but it will cost you extra..
Answered by Bob D - Sat Jan 26 11:47:40 2008

is an interest rate locked in until a cd matures?
Q.
Asked by Justin H - Fri Mar 27 15:01:33 2009 - Investing - 2 Answers - Comments

A. Yes, but you can close it and buy another one. This is one thing I haven't exactly wrapped my mind around. I think most people hold them to maturity even if it doesn't give the best return. They also buy shorter terms ones for that reason. If the interest rates on a longer term CD are much higher you are better off going to a longer term CD. This is true even if rates rise! You only lose 3 months interest in most if you sell them back. That is a quarter of a years interest. If the new rates go up by 25% then you are even in a single year by selling and ahead longer term. If they haven't gone up that much in a single year you are ahead. And the longer you hold them the greater your return over shorter term CDs. You have to play with the… [cont.]
Answered by Thor - Fri Mar 27 15:54:36 2009

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SOFI - " Locked and Loaded, Pt. 1" | Pulse Recording
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2011-10-24 17:58:35

SOFI Locked and Loaded, Pt. 1 . The multi-talented SOFI (Some Other Female Interest ) is no newcomer. Having earned her stripes working with some of the biggest names in the music industry, she debuted on mau5trap ...

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Cashing in on the decline of interest rates can provde the best possible mortgage refinance deals, but can this happen at all times? Lock and success The.

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Interest Rate Risk Modeling: The Fixed Income Valuation Course @ Barnes & Noble
@ Barnes & Noble
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Price: $52.07 USDCompare Prices
Condition: new

The importance of managing interest rate risk cannot be overstated. The explosive growth of interest rate swaps over the last quarter century is a telling sign that financial institutions and other market participants are concerned about the risk interest rates pose. Yet there is no easy way to address this issue. This book the first of three in the Fixed Income Valuation Course seeks to improve the current information available on interest rate risk, and upgrade your understanding of how to measure and manage it.Written by fixed income specialists Sanjay Nawalkha, Gloria Soto, and Natalia Beliaeva, Interest Rate Risk Modeling offers a detailed introduction to the various modeling techniques used by today's fixed income professionals.… [cont.]

European Fixed Income Markets: Money, Bond and Interest Rate Derivativ @ Barnes & Noble
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The introduction of the euro in 1999 cast a new focus on the financial markets of constituent euro-zone countries, which have subsequently emerged with the second largest bond market in the world. This new book offers in depth insights and advice for any practitioner in the European fixed-income and ancillary derivative markets, and includes in-depth analysis of euro and non-euro markets as well as emerging countries.

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