So if the prime rate is 0 what would be the interest rate on a house if you refinanced it?
My house is paid for but if the prime rate is 0 I'm thinking maybe I need to get a loan in it depending how long this Coronavirus shut down going to last. If the prime is 0 when the interest rate on a house be like 2 or 3%?
[{"id": "fkp3jmk", "text": "Rates are usually set prime + number that a bank marks up the loan by.", "replies": [{"id": "fkpxn2p", "text": "You and the original poster are both mixing up a lot of things. \n\nThe prime rate is not zero. It's about 3%. The Fed's fund rate rate is what is 0%. The prime rate only matters if you have an adjustable rate mortgage.  It doesn't necessarily correlate with fixed rate mortgages. \n\nAnd the Fed's interest rate has *nothing* to do with mortgage rates. They sometimes follow similar trends in that day both tend to go down during times when stock prices and economic conditions are going down, but they also often follow completely opposite trends. There isn't necessarily any correlation. \n\nMortgage rates are primarily based on the selling price of mortgage bonds, which tend to somewhat follow the 10-year bond rate, but even that doesn't always happen, including right now and they are diverging.\n\nIt's actually not a very good time to refinance.  Mortgage lenders are overwhelmed, and not enough investors are buying the mortgage bonds, so rates are higher than they should be considering the circumstances.  Nothing is certain, but it looks likely that rates should drop in the coming weeks as The mortgage industry gets caught up and normalizes with the lower bond prices.", "replies": [{"id": "fkq7cws", "text": "All true except for the part about there being \"no correlation\". Mortgage interest rates are based on the 10-year treasury bond, which is influenced by the Federal funds rate.", "replies": [{"id": "fkxvs7g", "text": "This.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fkp5dyu", "text": "15 year notes are at 2.99% or 3.05% APR", "replies": [], "depth": 1}, {"id": "fkp9sdv", "text": "Around 3% when central bank is lending at 0% .... but they have the ability to go to negative rates, bringing things down further", "replies": [], "depth": 1}, {"id": "fkpkykg", "text": "Get a HELOC. Usually can be done for no to little fee, and may help through this time.", "replies": [], "depth": 1}, {"id": "fkpmk8n", "text": "not zero", "replies": [], "depth": 1}, {"id": "flffck8", "text": "Thanks for explaining it", "replies": [], "depth": 1}]