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LIBOR Loans |
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Lowest rates from over 50 lenders displayed:
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| Loan Name |
Rate |
Pts |
APR* |
As of |
| LIBOR Year 5/1 |
4.62% |
2.0 |
4.87% |
2007-09-19 |
| LIBOR Year 3/1 |
4.12% |
2.0 |
4.38% |
2007-09-19 |
| Stated LIBOR Year 3/1 |
5.25% |
3.0 |
5.5% |
2007-09-19 |
| Stated LIBOR Year 5/1 |
5.5% |
2.0 |
5376.0% |
2007-09-19 |
| Jumbo LIBOR Year 5/1 |
6.625% |
2.0 |
6.88% |
2007-09-19 |
Two loan programs that are popular are the 3 Year LIBOR Loans and 6 month LIBOR Loans.
The 3 Year LIBOR Loans are popular because they allows you to fix the rate for the first three years of the mortgage, and the interest only feature means that your overall monthly payment can drop to 50% of your current mortgage payment if you are on a 30 year fixed mortgage payment. The interest rates are incredibly low, oftentimes in the 3% range, and there are caps on the libor index loans so the interest rate can only increase up to a maximum of 5% or 6% above the starting rate. And because these loans are based on the LIBOR index, you have a measure of comfort knowing that your loan is based on the worldwide standard for interest rates.
3 Year LIBOR Loans
The 6 Month LIBOR Loans are popular because they provides you with the ultimate in low monthly payments. LIBOR Rates on these programs are in the 2% to 3% range, and because of the interest only feature, a monthly payment that is incredibly low. The risk with the LIBOR index loans is that the rates will rise, but in most cases you are protected by a 6% cap over the start rate, so if you start at 2.5% then the worst case scenario is 8.5%, and that it is not so different than the 30 year fixed rate mortgage in the 6% range. All in all, the libor index loans are a good for the long or short term holder willing and able to take the risk of a changing monthly payment.
6 Month LIBOR Loans
For Example: Let's say you owe $100,000 on a regular 30 year fixed rate mortgage at 6.5% and you want to reduce your monthly payment with a refinancing to the 6 Month LIBOR Loans at 2.75%, your monthly payment would drop from $632.07 to $229.17 on the 6 Month LIBOR Loans, a savings of 64% per month and you have the comfort of knowing that you are linked to the internationally recognized LIBOR index. And if the rates went to 8.75%, which is the worst possible case, your payment would be capped out at $729, which is not too far from the regular 30 year fixed rate mortgage payment of $632.07. Our Current LIBOR Rates
125 home equity loan
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