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calculating information in most credit card applications, you will see their interest rates described as Prime Rate plus a fixed amount.
U.S. Prime Rate began as the interest rate that lenders charged to bor- rowers who were considered risk-free. This is not always the case these days. There is very little variation in Prime Rate from bank to bank. Adjustments to Prime Rate are generally made by all banks at the same time. In December 2010, the U.S. Prime Rate was at 3.25%; while in Canada, it was at 1%.
You may have heard of or seen the term Wall Street Journal Prime Rate (WSJ Prime Rate). It is published in the Wall Street Journal. The WSJ defines Prime Rate as “The base rate on corporate loans given by at least 75% of the nation’s 30 largest banks.”
Let’s Review __________________________________
Shopping for the Best Home Equity Loan
COMPARE LENDERS
Questions:
Current Mortgage
What are the monthly payments?
What is the Annual Percentage Rate (APR)? What is the interest rate?
Will the interest rate change?
When?
How often?
How much?
What will I have to pay in points?
Lender Lender AB ____ ____
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Home Equity Loans
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