Questions about Prime Rate
Join Date: Oct 2007
Posts: 559
Okay, so I've googled for a bit and read as much as I can, but some of my questions are unanswered.
I understand that the U.S. Prime Rate is typically 300 basis points above the Federal Funds Rate. Why?
I mean, every website I read says the Prime rate is what banks lend to their most trustworthy customers....why is there 300 point increase? Why not 200 points or less?
And, if the increase is 300 basis points, why aren't some people getting mortgages at 3.25% interest?
Thanks,
Josh
Join Date: Sep 2004
Posts: 19,114
read the stickies, general questions thread plz
