Prime Rate
Lending & MortgagesThe interest rate banks charge their most creditworthy customers, used as a benchmark for many consumer loan rates.
Example
Example: Suppose you take out a $300,000 30-year fixed mortgage at 6.5%. Understanding prime rate helps you see how your monthly payment of approximately $1,896 is structured — and how this concept affects your total cost over the life of the loan. Use our mortgage calculator to see how prime rate impacts your specific situation.