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Re: Re: I seem to recall... (Reply to this comment)
by Arthur.Rubin
I think it was an equity line of credit at prime-1; but I see your point.
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Apr 03 '01
12:19 pm PDT
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Re: I seem to recall... (Reply to this comment)
by huycd
Mortgages are backed by collateral; if you don't pay back your loan, the bank will take your house. A mortgage of Prime-1% is actually a little high. If you look, current national 30 year mortgages are ~1.8% below the Prime rate. The Coroporate Bond Rate is also backed by the assets of the company. The Prime Rate represents the best rate for an unsecured loan. And very few companies, much less individuals, will qualify for the Prime Rate on unsecured loans. There can be unusual exceptions where someone can get a below Prime Rate unsecured loan. For instance, I pointed out the Providian 5.9% credit card. However, the catch is that, if you miss a single monthly payment by even as much as a day, they'll jack the rates up and slap you with a late fee!
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Mar 20 '01
1:18 pm PST
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I seem to recall... (Reply to this comment)
by Arthur.Rubin
a bank that had a mortgage at Prime-1, a few years back.
Also, there are few banks which actually make loans at their Prime Rate -- the best, most credit-worthy customers pay less than prime, while most consumers pay considerably more.
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Mar 09 '01
1:57 pm PST
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