{"id":2214,"date":"2014-04-04T23:25:27","date_gmt":"2014-04-04T23:25:27","guid":{"rendered":"http:\/\/fastforwardstory.com\/?p=2214"},"modified":"2014-04-04T23:25:27","modified_gmt":"2014-04-04T23:25:27","slug":"what-is-prime","status":"publish","type":"post","link":"https:\/\/landtitleco.net\/what-is-prime\/","title":{"rendered":"What Is &#8220;Prime&#8221;?"},"content":{"rendered":"<p><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding:56.25% 0 0 0;position:relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height:100%;left:0;position:absolute;top:0;width:100%;\">\n<div class=\"wistia_embed wistia_async_gv8fqm5g4r dnt=1 videoFoam=true\" style=\"height:100%;position:relative;width:100%\">\n<div class=\"wistia_swatch\" style=\"height:100%;left:0;opacity:0;overflow:hidden;position:absolute;top:0;transition:opacity 200ms;width:100%;\"><img src=\"https:\/\/fast.wistia.com\/embed\/medias\/gv8fqm5g4r\/swatch\" style=\"filter:blur(5px);height:100%;object-fit:contain;width:100%;\" alt=\"\" aria-hidden=\"true\" onload=\"this.parentNode.style.opacity=1;\" \/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. Some consumer rates &#8211; like ARMs &#8211; are set in relation to Prime.<\/p>\n<p>In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.<\/p>\n<p>The video shows &#160;an example.<\/p>\n<ul>\n<li>The Federal Reserve loans to Bank A at 1%<\/li>\n<li>Bank A loans to Bank B at 4%<\/li>\n<li>Both banks &#8211; A &amp; B &#8211; will recalculate variable-rate loans like ARMs on that 4% Prime figure.<\/li>\n<\/ul>\n<p>ARM rates are frequently defined as &#8220;% above Prime&#8221; &#8211; that gap is usually called the &#8220;margin&#8221; or &#8220;spread.&#8221; Just remember those 3 layers in Prime: Federal Reserve Bank A Bank B And finally, YOUR rate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. Some consumer rates &#8211; like ARMs &#8211; are set in relation to Prime. In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent&hellip;<\/p>\n","protected":false},"author":117,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":""},"categories":[7],"tags":[16],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is &quot;Prime&quot;? - Silverdale, Port Orchard, Shelton, WA | Land Title Company<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/landtitleco.net\/what-is-prime\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is &quot;Prime&quot;? - Silverdale, Port Orchard, Shelton, WA | Land Title Company\" \/>\n<meta property=\"og:description\" content=\"The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. Some consumer rates &#8211; like ARMs &#8211; are set in relation to Prime. In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/landtitleco.net\/what-is-prime\/\" \/>\n<meta property=\"og:site_name\" content=\"Silverdale, Port Orchard, Shelton, WA | Land Title Company\" \/>\n<meta property=\"article:published_time\" content=\"2014-04-04T23:25:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/landtitleco.net\/wp-content\/uploads\/sites\/199\/2023\/06\/social-media-photo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"www.landtitleco.net\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"www.landtitleco.net\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/landtitleco.net\/what-is-prime\/\",\"url\":\"https:\/\/landtitleco.net\/what-is-prime\/\",\"name\":\"What Is \\\"Prime\\\"? - Silverdale, Port Orchard, Shelton, WA | Land Title Company\",\"isPartOf\":{\"@id\":\"https:\/\/landtitleco.net\/#website\"},\"datePublished\":\"2014-04-04T23:25:27+00:00\",\"dateModified\":\"2014-04-04T23:25:27+00:00\",\"author\":{\"@id\":\"https:\/\/landtitleco.net\/#\/schema\/person\/52ad653f7d9e509005b0b294f352eb49\"},\"breadcrumb\":{\"@id\":\"https:\/\/landtitleco.net\/what-is-prime\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/landtitleco.net\/what-is-prime\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/landtitleco.net\/what-is-prime\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/landtitleco.net\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is &#8220;Prime&#8221;?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/landtitleco.net\/#website\",\"url\":\"https:\/\/landtitleco.net\/\",\"name\":\"Silverdale, Port Orchard, Shelton, WA | Land Title Company\",\"description\":\"Land Title Company | Silverdale, Port Orchard, Shelton, WA\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/landtitleco.net\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/landtitleco.net\/#\/schema\/person\/52ad653f7d9e509005b0b294f352eb49\",\"name\":\"www.landtitleco.net\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/landtitleco.net\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/79474dce370bc7b98389f165fb5e759e?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/79474dce370bc7b98389f165fb5e759e?s=96&d=mm&r=g\",\"caption\":\"www.landtitleco.net\"},\"url\":\"https:\/\/landtitleco.net\/author\/www-landtitleco-net\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What Is \"Prime\"? - Silverdale, Port Orchard, Shelton, WA | Land Title Company","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/landtitleco.net\/what-is-prime\/","og_locale":"en_US","og_type":"article","og_title":"What Is \"Prime\"? - Silverdale, Port Orchard, Shelton, WA | Land Title Company","og_description":"The Prime Lending Rate &#8211; sometimes just called &#8220;Prime&#8221; &#160;- is the interest rate that banks charge each other for overnight loans. 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