{"id":2214,"date":"2018-07-30T23:25:27","date_gmt":"2018-07-30T23:25:27","guid":{"rendered":"http:\/\/fastforwardstory.com\/?p=2214"},"modified":"2018-07-31T12:49:48","modified_gmt":"2018-07-31T12:49:48","slug":"what-is-prime","status":"publish","type":"post","link":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/2018\/07\/30\/what-is-prime\/","title":{"rendered":"What Is &#8220;Prime&#8221;?"},"content":{"rendered":"<p><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding:56.25% 0 28px 0;position:relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height:100%;left:0;position:absolute;top:0;width:100%;\">\n<div class=\"wistia_embed wistia_async_aylyi06jd3 dnt=1 videoFoam=true\" style=\"height:100%;position:relative;width:100%\">&nbsp;<\/div>\n<\/div>\n<\/div>\n<p>The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. Some consumer rates &#8211; like ARMs &#8211; are set in relation to Prime.<\/p>\n<p>In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.<\/p>\n<p>The video shows &#160;an example.<\/p>\n<ul>\n<li>The Federal Reserve loans to Bank A at 1%<\/li>\n<li>Bank A loans to Bank B at 4%<\/li>\n<li>Both banks &#8211; A &amp; B &#8211; will recalculate variable-rate loans like ARMs on that 4% Prime figure.<\/li>\n<\/ul>\n<p>ARM rates are frequently defined as &#8220;% above Prime&#8221; &#8211; that gap is usually called the &#8220;margin&#8221; or &#8220;spread.&#8221; Just remember those 3 layers in Prime: Federal Reserve Bank A Bank B And finally, YOUR rate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. Some consumer rates &#8211; like ARMs &#8211; are set in relation to Prime. In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[19],"tags":[14],"_links":{"self":[{"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/posts\/2214"}],"collection":[{"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/comments?post=2214"}],"version-history":[{"count":1,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/posts\/2214\/revisions"}],"predecessor-version":[{"id":5237,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/posts\/2214\/revisions\/5237"}],"wp:attachment":[{"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/media?parent=2214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/categories?post=2214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/secure.titlecompanywebdesign.com\/unitedamericantitleagency\/wp-json\/wp\/v2\/tags?post=2214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}