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To: gleeaikin

Prime Rate - the Fed-set rate we all know and love. Few first mortgages are set to this-but home equity lines of credit almost always are

LIBOR - London InterBank Offered Rate - based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale (or "interbank") money market, usually US Dollars.

COFI - Cost of Funds Index - a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable-rate loans.


237 posted on 09/23/2006 8:05:14 AM PDT by RockinRight (She rocks my world, and I rock her world.)
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To: RockinRight
Prime Rate - the Fed-set rate we all know and love.

The Fed sets the Fed Funds Rate, banks set the Prime Rate.

246 posted on 09/23/2006 8:19:43 AM PDT by Toddsterpatriot (Goldbugs, immune to logic and allergic to facts.)
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