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| *Ostroff, Fair and Company>>>Renting & Real Estate |
Does anybody know how to calculate the london interbank index to come up with average interest rate.? |
On my mortgage i was on a 2 yr fixed ARM. Now my 2yrs is up and the ARM will be kicking in. I got a letter saying they will use the london interbank index rate for the new payment. Does anybody know where that is or how to calculate it? On adjustable rate loans, your rate is determined by two components. 1. The index, which in your case is the London interbank, also know as the LIBOR index (You will need to check your NOTE to see if your are on the 1,3,6 or 12 month). You can find the current rate by looking at Bankrate.com. 2. Your margin (you will find this one the NOTE you signed. You simply add these together and this will determine your interest rate. For Example: The 6 month LIBOR is at 5.3817 today, if your margin is 1, add these together and your rate is 6.3817% Also located on your note will be the limitations for the floor and ceiling of your rate adjustments for both the first change and the life of the loan. It will also show you the limitation cap per adjustment. Source(s): Title / Escrow officer 10 years. |
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