13Feb/100
The Three Largest Factors In Your Interest Rate – Mortgage
The Three Largest Factors In Your Interest Rate
David E Brumbaugh
There are three major factors that affect how much you pay for a loan. Understanding these factors can save you time, money and frustration.
1. The Federal Reserve Discount Interest Rate.
Banks and other lending institutions borrow money from the Federal Reserve Banks. The discount rate is the interest rate a Federal Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. This rate is set by the boards of directors of the Federal Reserve Banks. The discount rate has a direct effect on the