---
title: What is the difference between a fixed rate and a variable rate?
description: A fixed interest rate remains constant throughout the entire loan term, which means your EMI (Equated Monthly Installment) does not change. It ensures the predictability and stability. In contrast, a variable interest rate can fluctuate based on market conditions or…
url: "https://yazodo.com/help/mortgage-loan/what-is-the-difference-between-a-fixed-rate-and-a-variable-rate/"
updated: "2025-12-01"
category: Mortgage Loan
tags:
  - Fixed Rate Mortgage
  - "Mortgage & Home Loans"
  - Mortgage Loan Interest Rates
  - "Variable-Rate Mortgage"
---

# What is the difference between a fixed rate and a variable rate?

A fixed interest rate remains constant throughout the entire loan term, which means your EMI (Equated Monthly Installment) does not change. It ensures the predictability and stability.

In contrast, a variable interest rate can fluctuate based on market conditions or rates set by financial institutions. This means your EMI may increase or decrease over time, depending on interest rate movements. 

Note: Fixed rates are safer for those who want consistent payments, while variable rates of interest can be beneficial if market rates go down.