Maximum effective rate as set is an amount equal to four percentage points above the index of market yields
Nashville – The maximum effective formula rate of interest in Tennessee has been set at 12% and after the The Federal National Mortgage Association discontinued its free-market auction system for commitments to purchase conventional home mortgages, the maximum effective interest rate is 7.7% month of June.
The formula rate is based on a ceiling of 4% over the weekly average prime loan rate has been set at 8%. Commissioner Greg Gonzales said the rate remains in effect until the average prime loan rate as announced by the the Fed Bank changes.
The maximum effective rate as set is an amount equal to four percentage points above the index of market yields of long-term government bonds adjusted to a 30-year maturity by the U. S. Department of the Treasury. The most recent weekly average statistical data available is 3.7%.