All About Benchmark lending

The term benchmark lending may be unfamiliar to you, and while the term may be strange, the practice is more widely known. It would probably best to begin with making sure the term ‘benchmark’ is understood. A benchmark refers to an authoritative standard or value that serves as the reference point for the comparison of the product or service. In benchmark lending the benchmark is defined as the lowest rate of interest that an investor will accept for a non treasury investment. In the United States it may be referred to as the prime rate; this is the rate that Federal Reserve sets for interbank borrowing. Many institutions use this rate to offer money to corporations with exceptionally high creditworthiness. The important thing is that is the benchmark or standard on which all financing rates are based.
This is because banks have to borrow money, as strange as it sounds; benchmark lending determines how profitable a bank is and how much it charges its customers to borrow money. A bank is required by law to have liquid or cash reserves. If the bank loans the cash out, it loses that reserve until it’s paid back. A bank will employ benchmark lending to borrow money at 1% for example, and then offer a mortgage to a customer at 5%. The difference or 4% is the bank’s profit on the transaction. For individuals that hold credit cards with variable interest rates, benchmark lending impacts the amount of their monthly payments as interest rises or falls based on the benchmark.

Benchmark lending is vital in an economy that requires a constant influx of cash to offer growth. Benchmark lending allows for money to move from one lender to another or from a lender to a corporation for the creation of jobs through expansion of goods and services. For this reason, the prime rate in the United States was at nearly zero percent to encourage corporations and small businesses alike to invest money into growth.

It is important to remember that in benchmark lending, the benchmark rate and the prime rate may not be the same. The prime rate is set by a governmental agency, while a benchmark is set by a corporation or individual. Benchmark lending institutions may tie their rate to the prime rate for purposes of uniformity and marketability, but they are under no obligation to do so.

Benchmark Lending

Benchmark Lending Group Featured in Wall Street JournalSANTA ROSA, Calif. (July 20, 2005) - Benchmark Lending Group, Inc. is pleased to announce the publication of acœEasy Money, A Salesmanac Pitch,ac Wall Street Journal, July 20, 2005. This front-page article about Benchmark Lending Group highlights the companyacs

philosophy; customer service; and friendly, knowledgeable staff. The article also explains some of the benefits of non-traditional loan programs, such as Benchmark Freedom Loan. Ben Ray, one of Benchmarks top loan officers, is featured in the article which outlines the high-level of customer service that he and all employees at Benchmark provide. When he books loans, he arranges for appraisers

About Us Experience you can count onFor over a decade, Benchmark Lending has been helping home buyers and owners realize theirdreams.

As a primary lending institution, Benchmark is uniquely positioned to assist both refinancing and new mortgage customers.

We take the time to understand you and your financial goals. We tailor loans that take into account your cash flow, payment timeframe, equity plans and investment opportunities. You will get a loan that won't break your budget and provides you the flexibility and resources to get the most out of your property investments.Our loan process is in one word easy, easy to understand, easy to complete and most of all easy to manage, because we handle all the hard work. Your personal Loan Officer will manage the application process, work with you through any and all credit issues and help ensure that every I is dotted and every T is crossed. They will carefully explain every detail of your mortgage so there are no surprises on your monthly bill. Our sole aim is to make the experience of financing a new or existing home absolutely painless. We will guarantee that you have a loan tailored to your specific financial needs.