fed. rate sat 2.25%....
 

does that mean i can borrow money at a much lower rate??? are car loans and personal loans lower????
how exactly doe sthat affect me?? or benefit me???

RE: fed. rate sat 2.25%....
 

Existing adjustable-rate loans will generallygo down if they're tied to something like "prime plus xx%".

If you're looking for a NEW loan you might have to wait a bit for the banks to adjust the stuff they offer.

Why not call your favorite bank & ask?

RE: fed. rate sat 2.25%....
 

Means you will be able to borrow at a lower rate soon, banks are borrowing at 2.25 so they will mark it up a bit to make some monies. Your savings account rate will go down too and cds as well. That's what I remember from econ class. Keep in mind its kind of hazy, but I think thats the general idea.

Maybe another benefit is it will stimulate the economy? lol

RE: fed. rate sat 2.25%....
 

ckebottle is just about right... although I wouldn't count on being able to borrow at a lower rate...

The prime rate is the rate that banks are allowed to borrow at; but it almost never translates to consumers in the act of BORROWING...

Now when it comes to EARNING, it directly affects that.. For example, your savings account(s) most likely dropped significantly in the last year or two (mine went from 7% to 3.55%!!!!!)...

Such a PITA.. and of course, the gov't doesn't understand that it's not helping.. .Just like they thought a $300 tax return would boost the economy... tools..

anyway, as stated, adjustable rate loans are usually affected the most, but to get an AR-loan is - simply put - stupid.

RE: fed. rate sat 2.25%....
 

No joke. Anyone who falls for an Adjustable rate loan has either been provided misionformation, or has simply been duped. Never get an Adjustable Rate loan. Unless you are willing to see your "adjustable rate" skyrocket a month after you sign on the loan. AR loans are simplya way for lending institutions to rob you blind.

RE: fed. rate sat 2.25%....
 

Wouldn't it translate to consumers in that when the prime rate goes down the price of borrowing money goes down? But yeah, us consumers will never get to borrow at the prime rate =(

RE: fed. rate sat 2.25%....
 

AR loans are usually spelled-out in great detail in the fine print!

The banks can't just adjust the rate for no reason at all. They have to adjust it up & down with whatever index is listed. Like prime plug xx or whatever.

I'm not saying ARMs are good or bad, just that it's not a blank ticket for the bank to rob you. I was stuck in a fixed rate when all the ARMs were dropping like rocks.