# Prime rate sentence example

The variable interest rate is calculated based on adding 3 percent to the

**Prime Rate**.This rate can change as the U.S.

**prime rate**changes.It has a variable rate that is based on the Wall Street Journal

**Prime rate**.These variable rates fluctuate with the

**Prime Rate**.The interest rate is the

**prime rate**plus 6.5 percent variable.AdvertisementMost equity line rates are variable and tied to the

**Prime rate**.Some lenders tie their interest rates closely to an index such as the

**Prime Rate**or the Libor plus a predetermined margin, but the choice is ultimately up to the lender to decide what interest rate to charge.Not everyone can qualify for a prime-rate mortgage, but do your homework.

Lenders commonly offer ARMs that are either attached to the

**Prime Rate**or the LIBOR.The LIBOR and the

**Prime Rate**are often similar, but there is usually a difference between the two.AdvertisementBloomberg offers a listing of common mortgages indexes including the

**Prime Rate**and LIBOR.The history of the

**Prime Rate**is listed from over a decade ago up to present day.These lenders base their interest rates on one or more indexes, most commonly the U.S.

**Prime Rate**or the LIBOR rate.For example, if a lender sets mortgage interest rates based on the

**Prime Rate**plus two, this means that the mortgage interest rate is whatever the**Prime Rate**is plus a two percent interest rate.The 1-month and 3-month Libor rates are shown in the same chart as the

**Prime Rate**and the Federal Reserve Target Rate.AdvertisementThe

**Prime Rate**and the Federal Reserve Target rates are also shown for the same period.Since it is closely tied with U.S. rates, some use it as a predictor of where the

**Prime Rate**is going.The LIBOR rate is typically lower than the

**Prime rate**.Some lenders offer mortgages based on a different rate index, such as the U.S.

**Prime Rate**or some other index.An adjustable rate mortgage is tied to an index such as the

**Prime Rate**or the LIBOR.AdvertisementThe rate varies monthly, based on the

**prime rate**set by the federal government.Fixed or variable rates are negotiated between the borrower and the lender subject to SBA maximums, pegged to the

**prime rate**.Variable rates can be pegged to either the lowest

**prime rate**or the SBA optional peg rate, a weighted average of rates the fed pays for, calculated quarterly and published in the "Federal Register."Lentell notes that interest rates on SBA loans are negotiated by the borrower and the lender, but typically cannot exceed 2.75 percent above the Wall Street Journal

**prime rate**.Banks set the

**prime rate**at three percentage points above the Federal Rate.Advertisement