How does First Tech establish interest rates for personal loans and lines of credit?
Interest rates for fixed-rate loans are determined by the credit union and change from time to time as markets fluctuate. The rate an individual borrower is offered is based on the credit performance of the borrower. The rate given at the beginning of a loan remains until the loan is paid in full. Interest rates for lines of credit are variable and are based on the value of an Index plus a margin. The index is the prime rate and the margin is a percentage that is added to the prime rate. The index percentage offered to an individual borrower is based on their credit performance. Variable rates normally change shortly after the prime rate changes. Our rates can change on the 1st or the 15th of the month.
