Another alternative we can
offer you is an Interest Only Mortgage based on the LIBOR
ARM.
The LIBOR Arm is an
abbreviation for the “London Interbank Offered Rate” and is
the interest rate offered by a group of London Banks for the
US Dollar deposits of a stated maturity. The LIBOR is
used as a base index for setting rates of some Adjustable
rate financial instruments, including ARM’s.
Below is a listing of each of
the LIBOR Arm options and also a 3-year history of each
LIBOR option.
 One Month Libor Loan - The rate on this
product equals the sum of the LIBOR Index plus a margin
(quoted to you by the Lender), rounded to the nearest
.125%. This index value adjusts each and every
month, thusly; your interest rate adjusts monthly with
it.
Three Month Libor Loan - The rate on
this product equals the sum of the LIBOR Index also plus a
margin (quoted to you by the Lender), rounded to the
nearest .125%. This index value adjusts every 3
months, and your interest rate, in turn, adjusts every 90
days.
Six Month Libor Loan - The rate on this
product equals the sum of the LIBOR Index also plus a
margin (quoted to you by the Lender), rounded to the
nearest .125%. This index also adjusts every 6
months and thusly, your interest rate adjusts every 6
months with it.
One Year Libor Loan - The rate on this
product equals the sum of the LIBOR Index as well, plus a
fixed margin (quoted to you by the Lender), rounded to the
nearest .125%. This index only adjusts annually, and
your interest rate will adjust once a year
accordingly.
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|
|
|
|
|
|
Jan 04 |
1.098 |
1.132 |
1.211 |
1.461 |
|
Dec 03 |
1.120 |
1.157 |
1.219 |
1.458 |
|
Nov 03 |
1.160 |
1.170 |
1.230 |
1.487 |
|
Oct 03 |
1.120 |
1.166 |
1.221 |
1.455 |
|
Sept 03 |
1.121 |
1.160 |
1.180 |
1.286 |
|
Aug 03 |
1.117 |
1.142 |
1.210 |
1.471 |
|
Jul 03 |
1.104 |
1.118 |
1.151 |
1.279 |
|
Jun 03 |
1.123 |
1.116 |
1.124 |
1.201 |
|
May 03 |
1.319 |
1.278 |
1.223 |
1.221 |
|
Apr 03 |
1.318 |
1.308 |
1.290 |
1.362 |
|
Mar 03 |
1.309 |
1.288 |
1.262 |
1.340 |
|
Feb 03 |
1.334 |
1.336 |
1.336 |
1.368 |
|
Jan 03 |
1.339 |
1.348 |
1.353 |
1.477 |
|
Dec 02 |
1.382 |
1.383 |
1.383 |
1.477 |
|
Nov 02 |
1.380 |
1.432 |
1.471 |
1.705 |
|
Oct 02 |
1.741 |
1.702 |
1.618 |
1.664 |
|
Sept 02 |
1.819 |
1.806 |
1.751 |
1.813 |
|
Aug 02 |
1.820 |
1.816 |
1.851 |
1.943 |
|
Jul 02 |
1.818 |
1.823 |
1.863 |
2.070 |
|
Jun 02 |
1.836 |
1.860 |
1.948 |
2.251 |
|
May 02 |
1.844 |
1.896 |
2.090 |
2.634 |
|
Apr 02 |
1.842 |
1.913 |
2.100 |
2.613 |
|
Mar 02 |
1.880 |
2.031 |
2.332 |
3.006 |
|
Feb 02 |
1.883 |
1.920 |
2.068 |
2.496 |
|
Jan 02 |
1.829 |
1.862 |
1.989 |
2.420 |
|
Dec 01 |
1.876 |
1.883 |
1.983 |
2.445 | |
LIBOR
Stability
The LIBOR is gaining
popularity to the 10 Year Treasury Index, as it tends to not
accrue negative amortization, is a very slow moving index,
and usually carries a lower margin than the T Bill
Index. Many financial strategists suggest the
LIBOR is the best ARM Index available today.
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