A 30 day LIBOR is typically an Adjustable Rate or interest only Mortgage that is indexed according to the London Interbank Offered Rate. With this loan, your mortgage payments will change every month according to LIBOR.
What can I use a 30-day/1 Month LIBOR for and what are my options
You can use a 1 Month LIBOR to purchase a primary residence, secondary residence, or other investment properties. Some alternatives to the 1 Month LIBROR involve longer periods before rate changes and include 6 Month LIBOR and 1 Year LIBOR. If you want a mortgage that starts with a substantial period of low, fixed rates that eventually adjusts to LIBOR, try the 3/1 LIBOR or 5/1 LIBOR.
Why should I get a 1 Month LIBOR
A 1 Month LIBOR is the best way to take advantage of the fluctuations in the market. If interest rates fall, you will take advantage of the lower prices immediately. However, if rates rise, there will not be a gap of time for you to prepare for a larger bill. It is always important to remember that with a 1 Month LIBOR, your bills will change monthly. You must be financially flexible for a 1 Month LIBOR, or you may find yourself in default and facing foreclosure.
How can I get a 1 Month LIBOR
We offer 1 Month LIBOR Mortgages. Click to continue.
How can my FICO/ Credit Score affect my mortgage rate
Your Credit Score is important to determining your mortgage rate. A score from 720 to 850 is good credit. You should have little trouble finding a loan. A score below 660 will give your trouble, but anything below 620 is Sub-Prime or Non- Prime lending.
Q: What does the London Interbank Offered Rate mean?
A: The London Interbank Offered Rate is the rate that Europe based international banks charge each other for overnight funds.
Q: Does a 1 Month LIBOR come with caps?
A: Yes. Although it differs slightly between lenders, the cap for the first adjustment is usually 1%, each monthly cap after that is also 1%, and the lifetime cap is 6% over the start rate.
Q: Does a 1 Month LIBOR Mortgage usually require a down payment?
A: Yes, you will have to put some money down for a 1 Month LIBOR. If you are interested in a mortgage with no down payment, check out the No Money Down Home Purchase Loan- Flex 100.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.