Comments for Bank Prime Interest Rate http://www.bankprimeinterestrate.com Mon, 30 Aug 2010 06:49:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 Comment on The prime interest rate is? by Sagar Lakhani http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-37 Sagar Lakhani Mon, 30 Aug 2010 06:49:56 +0000 http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-37 The prime interest rate is a) the rate the Fed charges the member banks to borrow money The prime interest rate is
a) the rate the Fed charges the member banks to borrow money

]]> Comment on The prime interest rate is? by kellyjam http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-36 kellyjam Mon, 30 Aug 2010 02:07:09 +0000 http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-36 The Prime Interest Rate is the rate Banks charge their best customers to borrow money. The rate The Fed charges member Banks is the "Fed Discount Rate" The rate Banks charge each other is "The Fed Funds Rate." The Prime Interest Rate is the rate Banks charge their best customers to borrow money.

The rate The Fed charges member Banks is the “Fed Discount Rate”

The rate Banks charge each other is “The Fed Funds Rate.”

]]> Comment on The prime interest rate is? by TKH1401 http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-35 TKH1401 Mon, 30 Aug 2010 01:46:49 +0000 http://www.bankprimeinterestrate.com/71/the-prime-interest-rate-is/#comment-35 hi, set directly by the Fed through monetary policy hi,
set directly by the Fed through monetary policy

]]> Comment on Which is best: Periodic interest rate, or Prime interest rate? by Gaytheist Buddha http://www.bankprimeinterestrate.com/61/which-is-best-periodic-interest-rate-or-prime-interest-rate/#comment-31 Gaytheist Buddha Wed, 23 Dec 2009 21:38:18 +0000 http://www.bankprimeinterestrate.com/61/which-is-best-periodic-interest-rate-or-prime-interest-rate/#comment-31 Those are two completely different things. Periodic interest rate means they charge an unspecified interest rate per period. Prime interest rate means that charge the Prime Rate (3.25%) plus some float amount. Those are two completely different things.

Periodic interest rate means they charge an unspecified interest rate per period.

Prime interest rate means that charge the Prime Rate (3.25%) plus some float amount.

]]> Comment on WHAT IS THE PRIME INTEREST RATE , AND WHAT IS IT TODAY ? by Erol A http://www.bankprimeinterestrate.com/68/what-is-the-prime-interest-rate-and-what-is-it-today/#comment-34 Erol A Sun, 31 May 2009 14:20:46 +0000 http://www.bankprimeinterestrate.com/68/what-is-the-prime-interest-rate-and-what-is-it-today/#comment-34 The Prime Rate is a rate of lending established by the major banks in the US. It's typically set at 3% over the Federal Funds rate, which is the short-term rate at which banks lend each other money. It typically averages somewhere in the 8% range, If the economy needs to be stimulated, then rates are lowered, making money cheap to borrow, thus (in theory) causing people to spend more, which will have the effect desired, of stimulating the economy. If the economy is going too fast, they raise rates to put on the brakes to try to keep growth at a slow, steady pace. The current Prime Rate is 3.25%, a historic low. Don't expect it to keep this low for too long, though, especially if economists' predictions that we're digging out of this recession are actually correct. The Prime Rate is a rate of lending established by the major banks in the US. It’s typically set at 3% over the Federal Funds rate, which is the short-term rate at which banks lend each other money. It typically averages somewhere in the 8% range,

If the economy needs to be stimulated, then rates are lowered, making money cheap to borrow, thus (in theory) causing people to spend more, which will have the effect desired, of stimulating the economy. If the economy is going too fast, they raise rates to put on the brakes to try to keep growth at a slow, steady pace.

The current Prime Rate is 3.25%, a historic low. Don’t expect it to keep this low for too long, though, especially if economists’ predictions that we’re digging out of this recession are actually correct.

]]> Comment on When the Fed interest rate is cut to 1%, how will this impact Prime rate? by BobWang http://www.bankprimeinterestrate.com/44/when-the-fed-interest-rate-is-cut-to-1-how-will-this-impact-prime-rate/#comment-16 BobWang Sat, 01 Nov 2008 13:49:49 +0000 http://www.bankprimeinterestrate.com/44/when-the-fed-interest-rate-is-cut-to-1-how-will-this-impact-prime-rate/#comment-16 Prime is usually higher than Fed Funds. Some loans peg to LIBOR. Prime is usually higher than Fed Funds.
Some loans peg to LIBOR.

]]> Comment on Can a bank set interest rates below to prime rate or do they have to set them at Prime rate? by I Buy And Sell Houses http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-12 I Buy And Sell Houses Fri, 22 Aug 2008 17:39:12 +0000 http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-12 Sure. Banks can charge whatever interest they want. Similarly, they can pay whatever interest they want. And, actually, mortgage rates aren't directly tied to the prime anyway. Having said that, a mortgage rate of 6.1% in today's market is actually quite good. You're highly unlikely to find one below 5%. Unless it's some sort of teaser rate or some sort of ARM (adjustable rate mortgage). But that was one of the contributing factors to the sub-prime meltdown. So they're more difficult to find today. And if your finances are so thin that you need one below 5%, then maybe you should rethink your purchasing plans, or at least the amount you can pay for a property. Go see a good mortgage broker. He/she will tell you what you can qualify for, and what the rates for your situation are. Sure. Banks can charge whatever interest they want. Similarly, they can pay whatever interest they want.

And, actually, mortgage rates aren’t directly tied to the prime anyway.

Having said that, a mortgage rate of 6.1% in today’s market is actually quite good. You’re highly unlikely to find one below 5%. Unless it’s some sort of teaser rate or some sort of ARM (adjustable rate mortgage). But that was one of the contributing factors to the sub-prime meltdown. So they’re more difficult to find today. And if your finances are so thin that you need one below 5%, then maybe you should rethink your purchasing plans, or at least the amount you can pay for a property.

Go see a good mortgage broker. He/she will tell you what you can qualify for, and what the rates for your situation are.

]]> Comment on Can a bank set interest rates below to prime rate or do they have to set them at Prime rate? by Steve D http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-11 Steve D Fri, 22 Aug 2008 17:37:57 +0000 http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-11 Banks can set them anywhere they want. The problem is that muc below prime, they lose money (why would they loan to you at 5% when they can get 6% from their best customers). Right now, you will be hard pressed to find any mortgage near what you are looking for As of today, the best rate was on a 15-year fixed mortgage with an average rate of 5.83%...I just checked rates at Bankrate.com for a 15-year fixed in rural Maryland for $300,000 with no points and got a quote for 5.75 lowest. If you want to pay points, you can get it lowered. Banks can set them anywhere they want. The problem is that muc below prime, they lose money (why would they loan to you at 5% when they can get 6% from their best customers). Right now, you will be hard pressed to find any mortgage near what you are looking for

As of today, the best rate was on a 15-year fixed mortgage with an average rate of 5.83%…I just checked rates at Bankrate.com for a 15-year fixed in rural Maryland for $300,000 with no points and got a quote for 5.75 lowest.

If you want to pay points, you can get it lowered.

]]> Comment on Can a bank set interest rates below to prime rate or do they have to set them at Prime rate? by MadMan http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-10 MadMan Fri, 22 Aug 2008 17:36:10 +0000 http://www.bankprimeinterestrate.com/33/can-a-bank-set-interest-rates-below-to-prime-rate-or-do-they-have-to-set-them-at-prime-rate/#comment-10 Banks can set the interest rate on a mortgage at whatever they want to but Prime is the benchmark for good credit customers. You have not given any details but it is unlikely that you will get a mortgage below 5%. Banks can set the interest rate on a mortgage at whatever they want to but Prime is the benchmark for good credit customers. You have not given any details but it is unlikely that you will get a mortgage below 5%.

]]> Comment on How does the federal interest rate would affect the interest rate of a 30yrs fixed mortgage? by Todd S http://www.bankprimeinterestrate.com/92/how-does-the-federal-interest-rate-would-affect-the-interest-rate-of-a-30yrs-fixed-mortgage/#comment-62 Todd S Mon, 16 Jun 2008 22:14:22 +0000 http://www.bankprimeinterestrate.com/92/how-does-the-federal-interest-rate-would-affect-the-interest-rate-of-a-30yrs-fixed-mortgage/#comment-62 Yes, if the Fed feels there is inflation, the 30-year will likely rise as well. As others have mentioned, it's not possible to lock in a rate for an extended period of time, only 30-90 days. But that comes with a cost anyways, and rates aren't expected to rise much this years, perhaps just .25-.50 percent, if that. I would concern yourself more with getting your credit score, income, assets, and other documentation organized, as these will affect your interest rate much more.<p><a href="http://www.vimaxaffiliate.com/">Best Affiliate Program</a></p> Yes, if the Fed feels there is inflation, the 30-year will likely rise as well. As others have mentioned, it’s not possible to lock in a rate for an extended period of time, only 30-90 days. But that comes with a cost anyways, and rates aren’t expected to rise much this years, perhaps just .25-.50 percent, if that.

I would concern yourself more with getting your credit score, income, assets, and other documentation organized, as these will affect your interest rate much more.

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