Sunflower State | Gerard - 10/25/2006 19:25
prime is at 8.25?
Prime is typically the bottom or base line where lenders make loans to you and I. This of course is subjective. All lenders work on a spread which is why you will see variations in lending rates. Some competitive banks narrow out the spread to offer you a more attractive because you are a good borrower and they want your business. Where as, your neighbor is just an ok credit so his rates may not be as attractive = wider spread = more money to the bank.
The spread can be determined by the rates of deposits vs rates the money is loaned back out. There are a few more scenarios where the money calculated to get the best gain buy I am not familiar with them yet.
http://www.bankrate.com/brm/ratewatch/leading-rates.asp |
Look for good year end closeouts on...
