With loans, lines of credit and some credit cards, you may have the option to choose a fixed or variable interest rate. If you go with
the fixed rate, you'll always pay the same rate of interest on your balance. If you choose the variable rate, you can save on interest
if rates go down, but might pay more if rates go up. Variable rate lines typically carry a lower initial rate than fixed-rate loans.
When shopping around for the best interest rate, you will likely come in contact with the term 'APR'. This is the annual percentage
rate, which is a number used to state the interest rate and certain fees that will be charged on the loan. It is commonly used to
compare loan programs between different lenders. The Federal Truth in Lending law requires financial companies to disclose the APR
when they advertise an interest rate for personal credit accounts.
