If you’ve ever been involved with a loan, be it a home loan, a car loan, a personal loan, etc, you’ve probably heard the phrase “prime rate.” But have you ever stopped to figure out what the US prime rate really is and what all that prime rate talk is about?
If you haven’t you should and we suggest going over to this prime rate website to learn a whole lot more about it and to regularly track what the US prime rate is.
In short, as mentioned in that site the prime rate is “is the interest rate charged by banks when they lend money to other banks.” This rate is then benchmarked off the US Fed Rate and what the chairman of the Federal Reserve is doing with the US lending rate, a rate that is used to keep inflation in check.
This fed rate fluctuates every quarter as the Federal Reserve tries to keep America’s spending habits in check, which over the past 10 years, it hasn’t been able to do!
The above mentioned site also has a good prime rate determining flow chart you can check out to see what factors are determining that loan you’re trying to get from your bank. So the next time you go into a bank or finance specialist and they say, “the loan will be 2 points over prime” you can know what they’re talking about and say, wow, that’s a lot.
This was a paid review of the above site that we though would help you learn a little more about prime rates.
