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4 Which type of loan has a set interest rate?
Balloon rate
Adjustable rate
O Variable rate
Fixed rate
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Sagot :

GinnyAnswer

Final answer:

Fixed rate loans have a set interest rate that remains constant, offering stability to borrowers.


Explanation:

Fixed rate loans have a set interest rate that remains constant throughout the loan term. Unlike adjustable-rate loans where the interest rate can fluctuate based on market conditions, fixed-rate loans provide stability and predictability to borrowers.

For example, a 30-year fixed-rate mortgage will have the same interest rate for the entire 30-year period, ensuring that the monthly payments remain consistent.

Choosing a fixed-rate loan can be beneficial for individuals seeking to lock in a specific interest rate and avoid potential increases in payments due to interest rate changes.


Learn more about Types of loans here:

https://brainly.com/question/30104409


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