Comments on: All About Rates: Fed Rate, Prime Rate, LIBOR and COFI http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html personal finance blog with anecdotes, advice and commentary. Sun, 22 Nov 2009 06:04:27 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Curtis http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html/comment-page-1#comment-224940 Curtis Thu, 20 Mar 2008 14:50:18 +0000 http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html#comment-224940 A recent graduate level Finance instructor told me (he was just recently retired as a bank president) that Prime, unless specified to be tied to an index somehwere (such as LIBOR, and you better read the fine print to find out) is set by the bank itself. That helps the bank with marketing as they can raise their "Prime" rate and then offer loans at "Prime -1%!". So, unless you know for sure that your "Prime" rate is tied to some index, don't expect your credit card rates to drop with the Fed rate cuts. A recent graduate level Finance instructor told me (he was just recently retired as a bank president) that Prime, unless specified to be tied to an index somehwere (such as LIBOR, and you better read the fine print to find out) is set by the bank itself.

That helps the bank with marketing as they can raise their “Prime” rate and then offer loans at “Prime -1%!”. So, unless you know for sure that your “Prime” rate is tied to some index, don’t expect your credit card rates to drop with the Fed rate cuts.

]]> By: jim http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html/comment-page-1#comment-224938 jim Thu, 20 Mar 2008 14:43:55 +0000 http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html#comment-224938 Considering different banks offer different rates, I find it hard to believe you can't find a bank with a lower rate. Or is this just an excuse to complain? Considering different banks offer different rates, I find it hard to believe you can’t find a bank with a lower rate. Or is this just an excuse to complain?

]]> By: Marsello http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html/comment-page-1#comment-224929 Marsello Thu, 20 Mar 2008 13:21:19 +0000 http://www.bargaineering.com/articles/all-about-rates-fed-rate-prime-rate-libor-and-cofi.html#comment-224929 Tried to refinance my 30 year fixed mortgage earlier this month only to found out that the rate has not changed even after several Fed rate cuts. Even WSJ claims that new mortgage applicants and those who are refinancing are the ones who got screwed while ARM adjusters got pretty sweet deals, geez thanks Fed for screwing those who are actually responsible enough not to bail out on their loans. Tried to refinance my 30 year fixed mortgage earlier this month only to found out that the rate has not changed even after several Fed rate cuts. Even WSJ claims that new mortgage applicants and those who are refinancing are the ones who got screwed while ARM adjusters got pretty sweet deals, geez thanks Fed for screwing those who are actually responsible enough not to bail out on their loans.

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