---
title: "Fixed interest rate: definition | Desert Rock Capital"
url: "https://www.desertrockcapital.com/glossary/fixed-interest-rate"
description: "A fixed interest rate is an interest rate that stays the same for the entire life of the loan, so the rate and the payment do not change over time."
---

Loan costs

# Fixed interest rate
All lending terms
Definition

A fixed interest rate is an interest rate that stays the same for the entire life of the loan, so the rate and the payment do not change over time. As one federal example, the Truth in Lending Act defines a "fixed-rate mortgage" as "a transaction secured by real property or a dwelling that is not an adjustable-rate mortgage or a step-rate mortgage."

A fixed interest rate is set when a loan is originated and remains constant for the full term, so the scheduled payment stays the same from the first installment to the last. This contrasts with a variable or adjustable rate, which can rise or fall as an underlying index changes, causing the payment to change as well. Fixed rates are common on installment loans, many personal loans, and fixed-rate mortgages, where a predictable payment supports budgeting. Because the rate is locked, the total interest over the life of the loan can be projected in advance from the rate, the principal, and the term.

Source: [Truth in Lending Act (Regulation Z), 12 CFR 1026.18(s)(7)(iii)](https://www.law.cornell.edu/cfr/text/12/1026.18). This definition is general educational information, not legal or financial advice.
Related

- [Personal loans](/services/personal-loans)
- [Signature loans](/services/signature-loans)
Back to the Lending Glossary
More in
Loan costs
Principal
Interest
APR (annual percentage rate)
Origination fee
Application fee
Borrow with clarity

## Terms in writing, before you sign.

Desert Rock Capital is a licensed Utah lender with no credit check and no collateral. Apply online or visit a branch in Salt Lake City, Orem, or St. George, and get a straightforward decision, usually in about 30 minutes.
See if you qualify