Interest Rate
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Interest Rate
The interest rate is the cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions.
It is also common for lenders to charge different
interest rates for different types of loans, as
well as higher rates if you have had past credit
problems.
Some states have usury limits that limit the interest
rate a bank may charge on a loan, however some national
banks are bypassing this regulation by stating the
loan documents were prepared in their home office therefore making it exempt from usury laws.
Generally, residential mortgages have the cheapest
loan rates. Consumer loans are usually determined
by the bank's competition in the market.
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