Not at all. A fixed rate loan is one where the interest can't change in response to events. So if I borrow money for 30 years with a fixed rate loan at 5%, I wi

Not at all. A fixed rate loan is one where the interest can't change in response to events. So if I borrow money for 30 years with a fixed rate loan at 5%, I will pay 5% the entirety of the loan even if inflation rises to 10% or I am late with a few payments. You can always refinance though, but that creates a different loan. A variable rate loan is one where interest can change. Credit cards are usually variable, so if I miss a payment your interest rate can go up or if you've been a customer for a long time and have a good history of paying on time your interest rate can go down. Mortgages with variable rates usually fix the rate for x years and then they reevaluate in x years. During the housing bubble, variable rate mortgages with were common.