1 Year LIBOR Home Mortgage Loan

Why would I want a 1 Year LIBOR?
A 1 Year LIBOR is an adjustable rate mortgage (ARM) that is indexed by the London Interbank Offering Rate (LIBOR). LIBOR is the rate that Europe based international banks charge each other for overnight funds. The first year of your 1 Year LIBOR will give you low, fixed rates. Some lenders even allow you to only pay interest for the first year. After the first year, your mortgage rates change annually, and according to LIBOR.

What can I use a 1 Year LIBOR for, and what are my options?

You can use a 1 Year LIBOR to finance the purchase of a primary or secondary residence among other things. Some alternatives to the 1 Year LIBOR are the 5/1 Year LIBOR, 3/1 Year LIBOR, the 1 Month LIBOR, and the popular 6 month LIBOR.

Why should I get a 1 Year LIBOR?

A 1 Year LIBOR is a good option if you want to keep the first year of your payments low. You may want to free up some of your cash for small home improvements or other moving related expenses. However, it is important to note that your monthly payments will change significantly after the first year of payments. It is important to be financially prepared for the fluctuations in interest rates if you plan to use a 1 Year LIBOR Mortgage. If you fail to meet your monthly payments, you will face the possibility of foreclosure.

How can I get a 1 Year LIBOR?

We offer 1 Year LIBOR Mortgages. Click here to apply.

How can my FICO/Credit Score affect my mortgage rate?

Credit Scores are always important in determining mortgage rates, but many lenders expect especially high Credit Scores when offering a 1 Year LIBOR. If you score between 720 and 850, you are golden. You have A-Paper credit. If you score below 660 you will have trouble finding a lender even though the official cutoff for Sub-Prime or Non-Prime lending is 620.

Q: What are some other indexes I can use for an Adjustable Rate Mortgage?

A: If LIBOR is not quite right for you, consider COFI, COSI, or 12-MTA.

Q: Does a 1 Year LIBOR have caps?

A: Yes, the 1 Year LIBOR generally has a 2% annual cap, and 6% lifetime cap.

Another little tidbit…

  • 1 Year LIBOR is a popular choice for people who are refinancing.

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.

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