12/08/2025
š” Prime Rate 101:
The Prime Rate is basically the baseline interest rate banks use for many loansālike HELOCs, credit cards, and small business loans. Itās tied to the Fedās interest rates and moves when the Fed changes rates.
š Current rate: 7%
š Last year: 7.75%
ā
Tip: Prime affects adjustable rates, but not most fixed-rate mortgages.
Understanding Prime can help you make smarter borrowing decisions!