Posted on: 08th Oct, 2012 02:28 am
I plan to apply through a builder for USDA guaranteed loan this December to receive their incentives, and I know this particular builder sell all loans they originate to various banks. My question is who determines the interest rate? (USDA or Builder) If it’s USDA how does the builder make their money?
As far as I know, the interest rates will depend upon the market condition and USDA. The builder will make money by selling off the loans at a higher price to the other banks.
Hi Salamander!
Welcome to forums!
As far as I know, the rates will be decided by USDA.
Sussane
Welcome to forums!
As far as I know, the rates will be decided by USDA.
Sussane
There is no single person or group that sets universal interest rates. Instead, interest rates are dependent on a number of factors including government policy and supply and demand. Interest rates are significant because they affect the money supply: the higher the interest rates, the smaller the money supply.
Source: "www.ehow.com/about_5518488_determines-interest-rates.html"
Source: "www.ehow.com/about_5518488_determines-interest-rates.html"
Rate of interest is determined in the intereaction of demand for money and supply of money. Monetary authorities can however intervene in interest rate determination.