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Fixed rate: Fixed rate is a stable rate of interest. If you negotiate a fixed rate with your loan providers, you will be charged the same interest rate throughout your repayment period. The Loan Repayment Calculator uses a fixed rate of prime + 5%. For example, if the prime rate is 4.5%, fixed rate on the Loan Repayment Calculator will be 9.5% (4.5% + 5% = 9.5%). See also prime rate and floating rate. Floating rate: Floating rate is a rate of interest that varies over time with the prime rate. If you negotiate a floating rate with your loan providers, the interest you are charged during repayment of your loan will increase and decrease along with the prime rate. The Loan Repayment Calculator uses a floating rate of prime + 2.5%. For example, if the prime rate is 4.5%, floating rate on the Loan Repayment Calculator will be 7% (4.5% + 2.5% = 7%). See also prime rate and fixed rate. Prime rate: A variable rate of interest, expressed as a percentage per year. Prime rate is traditionally the lender's lowest interest rate. It is periodically established by the lender as a reference point for the interest rates it sets on its loans. See fixed rate and floating rate. Number of monthly payments: 114 monthly payments represent a total repayment period of 10 years (10 years x 12 monthly payments, less your 6 month grace period = 114 monthly payments). You can select a shorter repayment period by entering a lower number of monthly payments.
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