prime rate

Definition

The interest rate that commercial banks charge their most creditworthy borrowers, such as large corporations. The prime rate is a lagging indicator. also called prime.

Use prime rate in a sentence

Our firm was quite pleased with the prime rate we had, and had plans to maximize our leverage of it to further expand our operations.

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If you can make sure to always pay back your loans on time then you will eventually only get charged the prime rate.

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Shelly's credit score was below 600 due to some life events, so because of that, she was unable to qualify for a prime rate mortgage, but she still was approved for an adjustable rate mortgage, which she intends to refinance down the road.

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fixed-rate loan variable interest rate