Predictable Finances
Fixed-Rate Loans for the Entire Repayment Term: How to Know What You Will Really Pay
A fixed-rate loan can give you something especially valuable when the repayment term lasts several years: predictability. If the agreed interest rate remains unchanged throughout the loan, later movements in market interest rates should not automatically affect that contractual percentage. However, a fixed rate and a fixed installment are not exactly the same thing, and they also do not mean that insurance or other charges will always remain unchanged. Before signing, check exactly what is fixed and how much you will pay in total.
The key point
Fixed rate ≠ fixed total cost
The interest rate may remain unchanged while the total amount you pay can still vary if additional charges change.
Check the E.A. rate + installment + insurance + term + total repayment.