What is Prime Rate

The prime rate is actually the rate that the federal reserve charges its member banks to lende money over night. It has nothing to do with what the lender posta as the prime rate for its loans to borrowers. The prime rate may play a roll in effecting what the lender rate is but that is it. There is a huge confussion over that. In my seminars I have gotten that question so many times that I become acustom to vertually making that the first 15 minutes of my opening. My book  (Mortgage - Ocracy) goes very in deph on this fact and more. I have also started a group on mortgage education that may interest most of you.