Similar to a fixed rate loan in that you have a ceiling above which your payments will not rise.

"When I started in this business we had fixed rate loans and played a lot of golf."

They can be used where unpredictable interest rates make fixed rate loans difficult to obtain.

Those who qualify will be able to refinance their homes into a 30-year fixed rate loan.

These fixed rate loans were sold at a loss in order to balance withdrawals.

Floating rate loans are common in the banking industry and for large corporate customers.

The margin on prime rate loans is 3 percent.

It is also used as a reference point for interest chargeable on variable rate loans.

Apple Bank got it with an adjustable rate loan that was equivalent to 9.75 percent.

But lenders charge slightly lower interest on fixed rate loans with shorter terms.