I've always been interested in how loans are determined and how they relate to government-set policies/rates. Following are a few examples...
Fact:
*30-year conventional fixed-rate mortgages generally follow 10-year Treasury notes.
*30-year jumbo fixed-rate mortgages (over $417,000) are not backed by securities issued by Fannie Mae or Freddie Mac and therefor a considered riskier.
*Rates on auto loans move with the yields on three to five-year Treasury notes.
*Credit card rates are determined by the prime lending rate, plus other factors including a consumer's credit history.
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