Interest rates change so often because of the many
and varied number of products on which rates
are based and by which rates are determined.
- Prime rate: The rate offered to a bank's best customers.
- Treasury bill rates: Treasury bills are short-term debt instruments used by the U.S. Government to finance their debt. Commonly called T-bills they come in denominations of 3 months, 6 months and 1 year. Each treasury bill has a corresponding interest rate (i.e. 3-month T-bill rate, 1-year T-bill rate).
-
Treasury Notes: Intermediate-term debt instruments used by the U.S. Government to finance their debt. They come in denominations of 2 years, 5 years and 10 years.
-
Treasury Bonds: Long-debt instruments used by the U.S. Government to finance its debt. Treasury bonds come in 30-year denominations.
-
Federal Funds Rate: Rates banks charge each other for overnight loans.
-
Federal Discount Rate: Rate New York Fed charges to member banks.
-
Libor: London Interbank Offered Rates. Average London Eurodollar rates.
-
6 month CD rate: The average rate that you get when you invest in a 6-month CD.
-
11th District Cost of Funds: Rate determined by averaging a composite of other rates.
-
Fannie Mae-Backed Security rates: Fannie Mae pools large quantities of mortgages, creates securities with them, and sells them as Fannie Mae-backed securities. The rates on these securities influence mortgage rates very strongly.
-
Ginnie Mae-Backed Security rates: Ginnie Mae pools large quantities of mortgages, secures them and sells them as Ginnie Mae-backed securities. The rates on these securities influence mortgage rates on FHA and VA loans
Back to top
Back to INTEREST RATES main page.
© 1994-2010. All rights reserved. Home Equity Lending Professionals. 368 S. Via El Modena #3. Orange, CA 92869. 1-800MyMoney (1-800-696-6639) CA DRE license #00909476 REACH US VIA EMAIL AT: loaninfo@1-800mymoney.com
|