What is a basis point for an interest rate?

Answer A basis point is a segment or increment of measurement used to denote changes in interest rates. An interest rate can increase or decrease by a certain amount of basis points based on the goals to... Read More »

Top Q&A For: What is a basis point for an interest rate

How Much of an Interest Rate Cut Does One Point Buy?

Paying points when you close on a house is a way to pay some of the interest in advance. A single point equals 1 percent of the total mortgage value; for every point you pay, the interest rate goes... Read More »

How To Replace a High Interest Rate Credit Card With a Low Interest Rate Card?

Many consumers sign up for a specific credit card because they were offered an attractive introductory interest rate. The problem with introductory rates is that they eventually increase. Before yo... Read More »

Is credit card interest tied to the prime interest rate?

According to the Federal Reserve, some variable-rate credit cards base their interest rate on the prime interest rate. However, other rates can also be used, such as the Treasury bill rate.Source:F... Read More »

How to Compound Interest on a Daily Basis?

The interest on a personal, car or home loan is compounded or adds up on a time interval established by the lending institution. If your interest on a credit card, for example, is compounded once a... Read More »