Residential Mortgage Tied to Prime Rate

Answered by:

Question:

Have you ever heard that a bank cannot tie a 1st mortgage loan secured by a borrower's residence to Prime?

Answer:

All our Home Equity Lines of Credit and in-house mortgage loans are tied to the Wall Street Journal Prime. The reference may be that you cannot tie a HELOC to your bank's internal prime - an index you control.

First published on BankersOnline.com 11/15/04