2006-09-15 00:03:27 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
7.5% above the lending prime rate. Prime rate today is 8.25% so you would pay 15.75%.
2006-09-15 07:54:54 · answer #1 · answered by Steve R 6 · 0⤊ 0⤋
If the prime rate is 8.5% then your rate will be 16%. It means that if you look in the newpaper and see the current rate, just add 7.5% and that's what the bank will loan you. If the loan is a fixed rate, it stays at that rate. If it is a floating rate, then each day, the rate is adjusted according to the prime rate. The prime rate can vary slightly from bank to bank, but it is based on the federal interest rate.
2006-09-15 00:05:02 · answer #2 · answered by nondescript 7 · 0⤊ 0⤋
That what the base loan interest is add the prime plus any other percent in the loan term agreement and u get the APR!
2006-09-15 00:06:11 · answer #3 · answered by NONAME 3 · 0⤊ 0⤋
the base rate is the bank of england set rate, this is 7.5% above that (currently at 4.75 I think)
2006-09-15 00:10:49 · answer #4 · answered by Anonymous · 0⤊ 0⤋
it means you gonna be paying a very high interest rate you will be paying 7.5% more than the published interest rate.
2006-09-15 00:09:31 · answer #5 · answered by moonwalker 3 · 0⤊ 0⤋