# Choosing an Interest Rate Borrow helps you compare available loan options across supported lenders so you can select the interest rate model and terms that best fit your needs before taking out a loan. ### What Borrow displays during loan creation When configuring a loan, Borrow presents: * the current interest rate offered by each lender * whether the rate is variable or fixed (if available) * the required collateral for the chosen loan * resulting LTV * any fees included in the loan This allows you to evaluate cost, predictability, and risk across lenders. ### Choosing a variable (floating) rate A variable rate may suit you if: * you want the lowest possible rate today * you’re comfortable with rates that may move * you plan to monitor your loan and market conditions * you expect stable or declining borrowing demand #### Considerations * variable rates can rise during market volatility * increased interest costs may affect LTV * borrowers should track how rate movement affects loan health ### Choosing a fixed rate A fixed rate may suit you if: * you prefer predictable borrowing costs * you want to avoid fluctuations during volatility * you are risk-averse or planning a long-term loan #### Considerations * fixed rates may be higher than variable rates * availability depends entirely on the lender * fixed-rate BTC-backed loans are less common in crypto markets ### After your loan is created Once active: * your interest rate follows the model defined by the lender * variable rates may move up or down over time * Borrow displays your current rate and LTV in the dashboard ### Borrow’s role Borrow provides visibility and comparison tools when you open a loan. Rate management decisions remain with the borrower. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.satsterminal.com/borrow/interest-and-rates/choosing-an-interest-rate.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.