Highland Park Banks

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Click here to learn more about American Enterprise Bank

American Enterprise Bank
Phone: 847-681-8600
1725 N. McGovern St.
Highland Park, IL 60035

Website: www.americanenterprisebank.com

ABN AMRO
1921 Saint Johns Ave
Highland Park, IL 60035

Bank Leumi USA
Highland Park, IL 60035

Citibank F S B
2011 2nd St
Highland Park, IL 60035

Fifth Third Bank
799 Central Av
Highland Park, IL 60035

First Bank Of Highland Park
1835 1st St
Highland Park, IL 60035

First Midwest Bank
850 Central Ave
Highland Park, IL 60035-3218

Harris Bank
1746 2Nd St
Highland Park, IL 60035

Highland Park Bank & Trust
600 Central Av
Highland Park, IL 60035

Highland Park Bank & Trust
643 Roger Williams Av
Highland Park, IL 60035

JPMorgan Chase
513 Central Av
Highland Park, IL 60035

Lasalle Bank
1921 Saint Johns Ave Ste 100
Highland Park, IL 60035-3513

National City
579 Central Ave
Highland Park, IL 60035-3230

Northern Trust Bank
1700 Green Bay Rd
Highland Park, IL 60035

State Farm Bank
1907 2nd St
Highland Park, IL 60035-3115

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Banking and Interest Rates in 2007

For most consumers, the rates Highland Park banks charge for loans and other services is a complete mystery. The only sure thing is that the interest charged on loans is considerably higher than the interest paid on savings. However, banking and interest rates are not really a deep, dark secret. Rather they are simply complicated with complex formulas to help banks make money so they can afford many of the free services offered to customers.

Most Highland Park banking and interest rates in 2007 will be based on the prime interest rate charged by the banks to the most credit-worthy customers. Typically, the prime rate runs 300 basis points, or three percent, above the Federal Funds Rate, that charged to the banks. The Prime Rate is currently set at 8.25%.

When you receive a loan for a Highland Park home, car or other purpose the bank's opinion of your ability to repay the loan plays a role in the interest rate you will be charged. Many of the best credit-worthy customers can also be charged higher interest rates by Highland Park banks through variable interest rate loans, which specify an interest percent, which is added to the prime rate. If the prime rate changes, the total amount of the interest is adjusted accordingly.

For example, a person with a home mortgage of three percent plus prime, will be paying 11.25%. If the loan is written as a variable rate loan, when the prime rate changes, so does the customer's rate. If the prime rate is adjusted to nine percent, for instance, the customer will be paying 12 percent interest.

Other factors also contribute to the amount of interest a borrower pays, such as how the interest rate is calculated. Straight interest rate loans are uncommon in today's market, rather compounded interest rates are more the norm.

In most cases, the amount being charged as interest by a Highland Park bank is collected at the front of the loan period, making paying off the loan amount after a short time not an efficient use of the money.

For example, a loan of $100,000 with a fixed rate of 10 percent, for the same of argument, would see the first $10,000 paid going towards the interest. If the loan agreement requires payments of $1,000 per month, generally the first 10 months would be applied to the interest. From then on, every payment would go toward the principal amount.

Paying off the loan balance after the first year, would only account for $98,000 and you would have saved nothing on the interest payments. It may be better to maintain the loan as you are no longer paying interest on the debt.

If you need help with your finances, check out some Highland Park accountants.