LIBOR is an acronym for “London Inter-Bank Offered Rate.” It is a measure of bank-to-bank borrowing costs. This is important to know because the turmoil in the credit markets is making inter-bank borrowing costs go way up. Of course, LIBOR is going up too.
Many adjustable rate mortgages (ARMs) are tied to LIBOR indexes. This means that folks with ARMs scheduled to adjust in the next few months could end up with higher rates than they expect. For more information on LIBOR and other interest rates follow this link.
http://www.moneycafe.com/library/libor.htm
Anyone with additional questions or interest in refinancing out of a LIBOR ARM should scoll down to the bottom of the page and visit one of my business websites. There you will find my phone number and e-mail.
