Definition of Prime Rate:
Orange County Prime Rate:
This is the interest rate that banks charge to their best and most preferred customers. Changes in the prime rate are controlled by the Federal Reserve Board (FED) and are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the rates of mortgage loans.