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LIBOR Loan |
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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 Loan and 6 Month LIBOR Loan.
The 3 Year LIBOR Loan is popular because it 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 these loan 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 Loan
The 6 Month LIBOR Loan is popular because provides you with the ultimate in low monthly payments. 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 these 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’s not so different than the 30 year fixed rates in the 6% range. All in all, it’s a good loan for the long or short term holder willing and able to take the risk of a changing monthly payment. This loan requires good credit and is not available to all borrowers.
6 Month LIBOR Loan
For Example: Let’s say you owe $100,000 on a regular 30 year fixed at 6.5% and you want to reduce your monthly payment with a refinancing to a 6 Month LIBOR Loan at 2.75%, your monthly payment would drop from $632.07 to $229.17 on the loan, 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 ratest 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 payment of $632.07. Our Current LIBOR Rates
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