How to Find a Fixed Rate Loan

Fixed rate loans are available from banks, credit unions and other lending institutions. A fixed-rate loan could be a mortgage, home equity loan, automobile loan or a personal installment loan. Fixed-rate loans offer a set monthly payment, with no increases in the interest rate over the life of the loan. Unlike credit cards, fixed-rate loans don't allow you to make more charges to the loan after it is initially opened.

Instructions

1

Determine the purpose for your loan. Some lenders, such as mortgage companies, specialize in certain types of loans. That means a mortgage company may offer more attractive terms on a fixed-rate mortgage loan than a bank. Check with mortgage companies and banks or credit unions if you are shopping for a mortgage.

2

Check your credit report and score. Credit scores of 720 or higher usually result in the lowest interest rate on fixed-rate loans and the easiest approval process. Approval is available with lower credit scores but at higher interest rates. Order your credit report from AnnualCreditReport.com. The website is endorsed by the Federal Trade Commission to offer free credit reports under the terms of the Fair Credit Reporting Act (see Resources). Order your credit score separately, for a fee.

3

Shop for a fixed-rate loan at your current bank or credit union. Your status as an existing customer may qualify you for a fixed-rate loan at a slightly lower interest than non-customers might receive. Inquire about loans by visiting with a loan officer at the bank. Tell the loan officer about your credit score and credit background as you ask about rates.

4

Contact other banks, credit unions and lending institutions in person or by visiting their websites.

5

Analyze all the information you have gathered as you compare available fixed-rate loans based on their interest rates and fees.