6 Month LIBOR Home Mortgage Loan

Why should I get a 6 Month LIBOR

A 6 Month LIBOR is an adjustable rate mortgage (ARM) that is indexed according to the London Interbank Offered Rate. Every six months your mortgage payments will change according to LIBOR.

What can I use a 6 Month LIBOR for and what are my options

The 6 Month LIBOR Mortgage is a popular choice for financing residence purchases. It is always important to remember that with a 6 Month LIBOR your mortgage bill will change every six months. If interest rates rise, you could end up paying high bills. You must be financially flexible for a 6 Month LIBOR, or you may find yourself in default and facing foreclosure.

Why should I get a 6 Month LIBOR

A 6 Month LIBOR may be better for you than a 1 Year LIBOR because you can take advantage of the changing market more often. If the market interest rate is declining, you will be able to take advantage of it faster than a 1 Year LIBOR, but if the market interest rate is increasing, your bill will have a slower reacting time. In this way, a 6 Month LIBOR is somewhat comparable to an Adjustable Rater Mortgage indexed by COSI. COSI has a slower reaction time than COFI.

How can I get a 6 Month LIBOR

We offer 6 Month LIBOR Mortgages. Click to get started.

How can my FICO/ Credit Score affect my mortgage rate

Your Credit Score is incredibly important in determining your mortgage rates.If you score between 720 and 850, you are A-Paper; you have good credit. If you score below 660 you will have difficulty finding a lender, and if you score below 620 you are considered 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 6 Month LIBOR come with caps?

A: Yes. Although it differs slightly between lenders, the cap for the first adjustment is usually 1%, each periodic cap after that is also 1%, and the lifetime cap is 6% over the start rate.

Q: Does a 6 Month LIBOR Mortgage usually require a down payment?

A: Yes, you will have to put some money down for a 6 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.

  • Powered by SecureRights

    Answer these questions to request a FREE quote