Q:
What Is the Maximum Interest Rate Allowed by Law?
A:
Quick Answer
In the United States, the maximum interest rates financial institutions can charge are controlled by state law, and they vary from state to state. For example, Delaware sets the limit at 5 percent above the current federal discount rate while some other states have no limits at all.
Continue Reading
Credit:
Glow Images, Inc
Glow
Getty Images
Full Answer
Most states have "usury limits" dictating the maximum legal interest rates. Some states have different limits for different types of loans, such as consumer and non-consumer loans. Additionally, some states also include various conditions and exclusions. For instance, on a residential mortgage loan, Delaware does not limit the interest rate if the loan is greater than $100,000 and is not secured by a mortgage against the primary residence of the borrower.
Learn more about Credit & LendingRelated Questions
-
Q:
What Is the Government Annual Credit Report?
A: Federal law entitles all consumers to annual credit reports from the three major national credit bureaus free of charge, according to USA.gov. AnnualCredit... Full Answer >Filed Under: -
Q:
What Are Some of the Prime Rates on LIBOR?
A: There are no prime rates on the London Interbank Offered Rate, as the prime rate is the interest that a bank charges its least risky customers while LIBOR ... Full Answer >Filed Under: -
Q:
What Is a Mortgage Rate Chart?
A: A mortgage rate chart provides a historical look at the rise and fall of interest rates available for different types of mortgages, notes AmeriSave. As of ... Full Answer >Filed Under: -
Q:
What Is an Adjustable Rate Mortgage?
A: An adjustable rate mortgage, also known as variable- or floating-rate mortgage, is a type of mortgage where the rate of interest paid on the remaining prin... Full Answer >Filed Under:
