Changes

The '''Prime rate''' is the rate number that the [[bank]]s use to charge for interest on [[loans]].  It is most commonly used now as a gage for [[home equity line]] loans.  Many [[adjustable rate loan]]s also use the prime rate as their gage, but sometimes other indexes such as the [[LIBOR]] are used.

The '''Prime rate''' is the rate number that the [[bank]]s use to charge for interest on [[loans]].  It is most commonly used now as a gage for [[home equity line]] loans.  Many [[adjustable rate loan]]s also use the prime rate as their gage, but sometimes other indexes such as the [[LIBOR]] are used.

The prime rate has uses outside of the banking industry as well.  Most [[credit card]] companies will use the prime rate as a gage when setting their [[intereset rate]].

The prime rate has uses outside of the banking industry as well.  Most [[credit card]] companies will use the prime rate as a gage when setting their [[interest rate]].

Many other rates have a correlation with the prime rate although they operate separately.  For instance [[fixed rate loan]]s usually tie in more to the price of [[treasury bonds]], but the price of bonds has a tendency to correlate roughtly with the prime rate.

Many other rates have a correlation with the prime rate although they operate separately.  For instance [[fixed rate loan]]s usually tie in more to the price of [[treasury bonds]], but the price of bonds has a tendency to correlate roughtly with the prime rate.