Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The Difference Between Fixed and Variable Interest Rates

Finance is a complicated topic. Registered investment advisors (RIAs) go to school for years and then take a series of exams before they can become registered. Certified financial planners (CFPs) do complex math on spreadsheets while the rest of us figure out how to use a loan payment calculator. They’re professionals. Most consumers aren’t on the same level.

Thankfully, there are some finance topics that are easy to explain, like fixed and variable interest rates. Most adults have paid both at some point in their lives and may not realize it.

Credit card companies charge variable interest and most personal loans and mortgages do not. In this article, we’ll explain what the difference is and how it affects the consumer.

 

Fixed interest rates on personal loans and mortgages

A fixed interest rate is a rate that is set at the inception of a loan and doesn’t change during the repayment term. Let’s say the loan is for $5,000 at a 10% fixed rate for five years. Repayment for that loan is made in sixty equal monthly installment payments. Amounts for those payments are fixed at the beginning because the interest rate remains constant.

The same concept can be applied to mortgages, but the repayment term is typically much longer than with a personal loan. Most mortgages are fifteen, twenty, or thirty years. Fixed interest is calculated annually and added to the monthly payment, along with any fees or charges from the lender. This combination is known as the annual percentage rate or APR.

Fixed interest rates are good for the borrower if rates are expected to rise. During the 2020 pandemic and the following months, interest rates were near zero. Anyone who bought a house during that time is now paying significantly less than what buyers are paying now. The Federal Reserve Bank has been steadily raising interest rates in 2022.

 

Variable interest rates on credit card balances

Credit card companies charge a variable rate of interest on outstanding balances owed. That’s a good reason to pay off those balances in full every month. If the prime interest rate is high, the credit card interest payment will be increased. The terms and conditions of the credit card contract should clearly state how they calculate it each month.

Lenders and mortgage companies also offer variable interest rates, which may not be good for the consumer. Adjustable-rate mortgages (ARMs) were primarily responsible for the financial crash of 2008. They’re attractive because the rate is lower at the beginning of the term. Problems arise when interest rates increase, and the monthly payments increase.

 

The Bottom Line

Having a fixed rate of interest and monthly installment payments that don’t change makes budgeting simpler. Variable interest rates can be like playing the lottery. There are wins, and there are losses. That’s okay for a short-term personal loan. It’s risky when taking out a thirty-year mortgage. Fixed-rate mortgages are safer and far more popular.

Sponsored Content

Contact Information:

Name: Michael Bertini
Email: michael.bertini@iquanti.com
Job Title: Consultant

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.