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#1280678 - 11/04/09 07:26 PM Variable rate loans
msboo Offline
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Joined: May 2006
Posts: 260
When doing a variable rate loan that is tied to prime plus a variance, does the variance have to be disclosed? Such as: Wall Street Prime Rate plus 1% or less 2%. Example: Have a loan marked Index+margin: Wall Street Prime Rate..but nowhere in the document does it state what the variance with prime is. It does state it can change daily, and includes a floor and ceiling.

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Lending Compliance
#1280845 - 11/04/09 08:24 PM Re: Variable rate loans msboo
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If you are referring to your loan document then you have not contracted for a margin and your rate will be whatever prime, your floor or ceiling is.
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The opinions expressed are mine and they are not to be taken as legal advice.

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