Home | Ask Your Question | Mortgage Glossary
 
Search a lender for:  

Fed Funds Rate

The interest rate at which banks lend money to each other, usually on an overnight basis. The law requires banks to keep a certain percentage of their customer's money on reserve, where the banks earn no interest on it.

Please find the current federal funds index rate in the lower part of the rate box (right).

The federal funds rate is used to control the supply of available funds, inflation and other interest rates. Raising the rate makes it more expensive to borrow. That lowers the supply of available money, which increases the short-term interest rates and helps keep inflation in check. Lowering the rate has the opposite effect, bringing short-term interest rates down.

Are you curious as to what your mortgage rate and closing costs might be if you were to refinance or purchase a new home right now? You can run your numbers and get instant on-line estimates here: www.top-lenders.com. No contact information is required.

Read more about federal funds index based mortgages >>

Read more about FHA mortgages >>

Fderal mortgage search:

Fresh Mortage Rates
Add to Your Site
 
 

ExplainingMortgages © 2005