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Libor
The LIBOR Arm is
an abbreviation for the “London Interbank Offered Rate” and is
the interest rate offered by a group of London Banks for the US
Dollar deposits of a stated maturity. The LIBOR is used as a
base index for setting rates of some Adjustable rate financial
instruments, including ARM’s. Below is a listing
of each of the LIBOR Arm options and also a 3-year history of
each LIBOR option.
-
One Month Libor Loan - The rate on this
product equals the sum of the LIBOR Index plus a margin
(quoted to you by the Lender), rounded to the nearest .125%.
This index value adjusts each and every month, thusly; your
interest rate adjusts monthly with it.
-
Three Month Libor Loan - The rate on
this product equals the sum of the LIBOR Index also plus a
margin (quoted to you by the Lender), rounded to the nearest
.125%. This index value adjusts every 3 months, and your
interest rate, in turn, adjusts every 90 days.
-
Six Month Libor Loan - The rate on this
product equals the sum of the LIBOR Index also plus a margin
(quoted to you by the Lender), rounded to the nearest .125%.
This index also adjusts every 6 months and thusly, your
interest rate adjusts every 6 months with it.
-
One Year Libor Loan - The rate on this
product equals the sum of the LIBOR Index as well, plus a
fixed margin (quoted to you by the Lender), rounded to the
nearest .125%. This index only adjusts annually, and your
interest rate will adjust once a year
accordingly.
Month/Yr
|
1 mo LIBOR |
3-mo LIBOR |
6-mo LIBOR |
1 Yr LIBOR
|
|
Jan 04 |
1.098 |
1.132 |
1.211 |
1.461 |
|
Dec 03 |
1.120 |
1.157 |
1.219 |
1.458 |
|
Nov 03 |
1.160 |
1.170 |
1.230 |
1.487 |
|
Oct 03 |
1.120 |
1.166 |
1.221 |
1.455 |
|
Sept 03 |
1.121 |
1.160 |
1.180 |
1.286 |
|
Aug 03 |
1.117 |
1.142 |
1.210 |
1.471 |
|
Jul 03 |
1.104 |
1.118 |
1.151 |
1.279 |
|
Jun 03 |
1.123 |
1.116 |
1.124 |
1.201 |
|
May 03 |
1.319 |
1.278 |
1.223 |
1.221 |
|
Apr 03 |
1.318 |
1.308 |
1.290 |
1.362 |
|
Mar 03 |
1.309 |
1.288 |
1.262 |
1.340 |
|
Feb 03 |
1.334 |
1.336 |
1.336 |
1.368 |
|
Jan 03 |
1.339 |
1.348 |
1.353 |
1.477 |
|
Dec 02 |
1.382 |
1.383 |
1.383 |
1.477 |
|
Nov 02 |
1.380 |
1.432 |
1.471 |
1.705 |
|
Oct 02 |
1.741 |
1.702 |
1.618 |
1.664 |
|
Sept 02 |
1.819 |
1.806 |
1.751 |
1.813 |
|
Aug 02 |
1.820 |
1.816 |
1.851 |
1.943 |
|
Jul 02 |
1.818 |
1.823 |
1.863 |
2.070 |
|
Jun 02 |
1.836 |
1.860 |
1.948 |
2.251 |
|
May 02 |
1.844 |
1.896 |
2.090 |
2.634 |
|
Apr 02 |
1.842 |
1.913 |
2.100 |
2.613 |
|
Mar 02 |
1.880 |
2.031 |
2.332 |
3.006 |
|
Feb 02 |
1.883 |
1.920 |
2.068 |
2.496 |
|
Jan 02 |
1.829 |
1.862 |
1.989 |
2.420 |
|
Dec 01 |
1.876 |
1.883 |
1.983 |
2.445 |
LIBOR Stability
The LIBOR is gaining
popularity to the 10 Year Treasury Index, as it tends to not
accrue negative amortization, is a very slow moving index, and
usually carries a lower margin than the T Bill Index. Many
financial strategists suggest the LIBOR is the best ARM Index
available today.
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