What does "fixed rate" mean for a loan?

[Joe Nonety]

Does it mean just that the interest rate is fixed or does it also mean that the duration and repayments are fixed as well?

 

[CCOVICH]

Not sure about the repayments, but I would imagine the term is fixed, i.e. if you repay early, you will be penalised. Not sure about extending the term, but would imagine that would be a penalty of some form there as well. At the end of the day, each loan agreement will be determined by the terms and conditions attached, which can vary between lenders.

 

[WizardDr]

Generally short term loans may be fixed for both the rate and the duration and theerfore payment fixed also. Some short term loans have varable rates and the payment remains fixed and is either a shorter term (interest rates down in the period) or a longer term (interest rates up in the period).

As regards mortgages these are normally variable unless you decide to fix for a period of time. In which case both the period of the fix and the payment are held. Longer the period of the fix the higher the rate.