Delaware Mortgage Loans

This is a consensus measure of the Prime Rate, and is published in the Wall Street Journal. The Wall Street Journal surveys the large banks and then publishes their consensus “Prime Rate”, or the rate offered to clients who are considered eligible for “prime” financing terms. The Prime Rate will move up or down in lock step with changes made by the Federal Reserve Board. The Prime Rate is an important index used by banks to set rates on many consumer loan products, such as credit cards, auto loans, and certain Adjustable Rate Mortgages. When the Prime Rate is rising, variable interest rate loans and credit card rates will soon follow.

Summary:
This is a great benchmark to use when comparing your selected ARM strategy to another option. The majority of the ARM fully indexed rates will normally be lower when compared to the Prime Rate and will make sense to your business-minded clients.

This index is not readily available for use as a long-term mortgage index for consumer ARMs, but is primarily used for Home Equity Line of Credit loans and other second mortgage products.