Frequently Asked Questions
What is the difference between fixed-payment and fixed-principal?
Fixed-payment (amortization) has equal monthly payments. Fixed-principal has equal principal portions with decreasing interest, resulting in lower total interest.
What types of interest rates are there?
Fixed rates stay the same throughout the loan term. Variable rates change with market conditions. Hybrid rates are fixed initially, then become variable.
What is a prepayment penalty?
A fee charged for paying off a loan before its scheduled end date. It typically applies within the first 3 years of the loan.
Updated 2026 — latest rates