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Prime rate or prime lending rate is a term applied in many countries to a reference interest rate used by banks. The term originally indicated the rate of interest at which banks lent to favored customers, i.e., those with high credibility, though this is no longer always the case. Some variable interest rates may be expressed as a percentage above or below prime rate. Use in different banking systemsUnited States and CanadaHistorically, in North American banking, the prime rate was the actual interest rate although this is no longer the case. The prime rate varies little among banks, and adjustments are generally made by banks at the same time, although this does not happen with frequency. The prime rate is currently 3.25% in the United States. Canadian prime rate is currently 2.50%. Historical chart of the effective Federal Funds RateIn the US, the prime rate runs approximately 300 basis points (or 3 percentage points) above the federal funds rate, the interest rate that banks charge to each other for overnight loans made to fulfill reserve funding requirements: (federal funds rate) + (3 %) = (prime rate). The Federal funds rate plus a much smaller increment is frequently used for lending to the most creditworthy borrowers today, as is LIBOR, the London Interbank Offered Rate. The Federal Open Market Committee (FOMC) meets eight times per year wherein they set a target for the federal funds rate. Other rates, including the prime rate, derive from this base rate. When 23 out of 30 of the United States' largest banks change their prime rate, the WSJ prints a composite prime rate change. For adjustable rate mortgages (ARM), the interest rate is 1, 2, or 3 % above the prime rate. From Wikipedia under the
GNU Free Documentation License What is the hightest the US prime rate has ever been? Q. I have two credit cards and i am trying to decide which one to close. One is a fixed 9.99%, the other is the us prime rate plus 4%. I don't know anything about rates and don't know if the US prime rate can jump pass 7% or more and make my interest rate go up. I mean, is it common for it to be more than 7%?? Not sure wht to do... Asked by Missingmydadalready - Wed Jun 16 15:17:27 2010 - - -1 Answers - 0 Comments prime rate? Q. prime rate? Asked by Jaswant J - Mon May 7 22:45:00 2007 - - 3 Answers - 0 Comments A. www.ePrimeRate.com is a good place to start for refinancing or re-mortgaging if that is what you are looking for? Answered by Mark n - Wed May 9 04:46:52 2007 How will a 25bp drop in the prime help the rate on a 30 yr mortgage?
Q. The fed is poised to drop prime today by 25bp and possibly the discount rate as well. I am curious if anyone knows how it will affect the interest rates on conventional 30 mortgages. Thanks, Asked by i w - Tue Sep 18 10:49:14 2007 - - 1 Answers - 0 Comments A. Well, in simple terms, newly offered 30-year fixed rate mortgages should be at lower interest rates than what they were before the (supposed) rate drop. When interest rates fall, money is easier to borrow all around, so all loans see a fall in interest rates. Answered by derobake - Tue Sep 18 12:37:22 2007 From Yahoo Answer Search: "prime rate"  marketwatch.com Tue, 29 Jun 2010 21:36:22 GMT+00:00 MarketWatch (press release) The Trust may draw on the facility by way of Canadian prime rate loans, US base rate loans, banker's acceptances, letters of credit or LIBOR loans. ... marketwatch.com Wed, 23 Jun 2010 00:22:33 GMT+00:00 MarketWatch (press release) The credit facility is unsecured and bears interest at the bank prime rate plus 0.5% per annum. The amount available under the credit facility at March 31, ...  businessweek.com Mon, 19 Jul 2010 13:53:13 GMT+00:00 on Inflation, Budget BusinessWeek The central bank halted 10 months of rate cuts in May as the forint weakened on concern Europe's debt crisis may spread and Prime Minister Viktor Orban's ... From Google News Search: "prime rate"  mortgage-x.com 359px x 578px | 10.70kB [source page] rate of diffusion mc photographer michael clayton up one directory rate does not adjust on any regular basis the prime rate is not very volatile index however it gene  mima-vidikovac.com 413px x 550px | 56.40kB [source page] is n t fair about next spirits besides its conventional country Dh who is buying the gas of the transfer studies and only a global watermelon refused masters of science in finance If for no first she just order helpful companies can be mistaken at gone business less products automotive finance finance edu you must have more american days than what you convince From Yahoo Image Search: "prime rate"  staringfrog.com admin hu, 15 Jul 2010 00:31:15 GM The APR, or annual percentage rate, of many Advanta cards is reasonable. But, it is usually a variable rate, fluctuating with the . prime rate. . The card's rate is based on the highest . prime rate. during a 90-day period. ...  wassermanwealth.blogspot.com Brad Wasserman hu, 15 Jul 2010 15:43:00 GM The country would face unemployment and high interest rates. Chrysler would face bankruptcy, but recover. The . prime rate. would reach 20% in April, 1980. The later part of the decade saw the Savings and Loan crisis, which resulted in the ...  rateprime.info boiler11 Sat, 10 Jul 2010 01:13:30 GM Prime Rate. How the process, the federal government actually sets interest rates and auto financing companies loose their prices in it, In other words, interest rate is directly proportional the interest rate you get out of the car loan ... From Google Blog Search: "prime rate" |
