Are monthly loan payments affected if there is a change in the Prime Rate?
There are typically no changes made to the loan payment amount during the year unless requested by the borrower. This is a real benefit for those managing their cash flow on a monthly basis. Interest only payments may be adjusted at least annually to reflect changes in the outstanding principal of the loan and the Prime Rate. Although changes to interest only payment amounts typically occur in January and usually remain fixed for the entire calendar year, we reserve the right to adjust payments at any time if the Prime Rate changes significantly.
Related Questions
- rate loan is defined at 2% below Prime and very low-rate loan is defined at 4% below prime. What is the credit for a bank that makes a loan that is between 2 and 4% below prime?
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- Are monthly loan payments affected if there is a change in the Prime Rate?
