Image result for fixed rate loan

A fixed-rate loan has a fixed interest rate during the entire loan period. As a result, even if there are financial turns, your interest rate will remain fixed. You therefore ensure yourself against unpleasant surprises and can therefore easily keep track of your expenses.


Eg. If you take a fixed rate loan with a 4% interest rate, the interest rate will remain the same until the amount is paid. On the other hand, the interest rate will not fall either by a fall in the market interest rate, so you do not have the opportunity to benefit by having your interest rate reduced.

If you do not feel like this type of loan, you have the option of using a variable rate loan. A variable rate can both rise and fall, so you can either benefit or bite into the acidic apple.

A typical loan period expires in 30 years, but you yourself have the option to choose your loan period.

pros and cons


As you know your fixed interest rate throughout the term of the loan, this loan is popular. There are no surprises along the way and you therefore have financial stability.

Suitable for conversion

Image result for fixed rate loanYou have the opportunity to redeem your fixed-rate loan if you wish. By redeeming your loan, you can take a new loan to your advantage if the economy changes. You can also convert the loan to 100, which will give you a limit on how much your residual debt can increase.

You should therefore keep an eye on the conversion so that you have the opportunity to exploit the situation.

Security and stability

When the interest rate is set, do not worry if the economy begins to fall from your loan provider. You are therefore guaranteed against global threats that can hit both the EU and Denmark financially.

Protection of free value

By taking a fixed rate loan, you secure your property value as you are financially secured against high interest rate increases.

The disadvantages

If the economy begins to flourish, you will not be able to take advantage of a lower interest rate that would benefit you in the longer term. You pay for the high security.

Fixed rate

The fixed interest rate on a fixed rate loan will typically be slightly higher. It may be a disadvantage if the economy is rising, but it can also benefit you if the economy falls.

Interest rates are often higher

Compared to a variable rate mortgage, interest rates will often be higher as you pay for the stability.


Image result for fixed rate loanAs mentioned earlier, you have a fixed interest rate throughout the loan period. Depending on how high or low the interest rate you are offered depends on:

  • The loan period (1-30 years)
  • Is the loan with or without installments
  • How is the economy at the moment for your provider.
  • Possible threats from abroad


You must be aware that your bid price from the loan provider may change until the loan is to be paid out. You should therefore be comfortable before signing the final agreement.

  • The course depends on your running period eg. a 10-year running period will be cheaper than a loan period of 30 years, as you pay substantially more a month.
  • If the official rate is over 100, loan providers will not offer a fixed rate loan.
  • When the interest rate is to be chosen, the starting point is the effective exchange rate before tax for the previous trading day.

only loans

Image result for fixed rate loanseveral loan providers offer interest-only payments for up to 10 years. This can help you through periods of less revenue. You must be aware that you still pay interest and fees during the grace period.

You should consider making use of interest-only payments if:

  • You have other expenses that should be prioritized.
  • Your income will be reduced for a period

Whether you need to take this loan depends on how you are as a person. Do you want stability, or you can just take chances. This is what you need to focus on before making the final decision.

If you are still in doubt between fixed rate or variable rate, you have the opportunity to watch a video.


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