LIBOR

Does anyone know anything about LIBOR loans and how they work? Are they a good idea for beginning investor?

Comments(6)

  • pattons16th March, 2004

    To get full details about the LIBOR loans you can put LIBOR loans in the search like google or your favorite search engine and you will find a ton of information on these interest only loans. All the facts and figures you are looking for and much more.

  • al88316th March, 2004

    Libor loans are not very attractive to investors since they will loan up to 70% LTV for non-owner occupied.

    hope this helps!

  • lassitermarketing16th March, 2004

    LIBOR is an acronym for London Interbank Offering Rate. It is an index that many ARM programs are now based off of instead of the CMT (Constant Maturity Treasury).

    It has to do with the ARM margin. That is what they add to prime to get your rate.

    The margin on a treasury ARM is 2.750 or 2.875 for a jumbo whereas on a LIBOR it's 2.250 or 2.375. It's also supposed to be more stable than treasury.

    There are many LIBOR based ARM loans that will go up to 95% LTV for non owner occupied. Just talk to a good broker.

    50 bps on margin is a good enough reason to ask for a LIBOR based ARM (if the caps are good) instead of a treasury based one.

    Hope that helps!

  • tinman175517th March, 2004

    Quote:
    On 2004-03-16 21:12, al883 wrote:
    Libor loans are not very attractive to investors since they will loan up to 70% LTV for non-owner occupied.

    hope this helps!


    You can get a libor indexed loan for up to 95% LTV. Non-owner occupied.

    Lori
    [addsig]

  • rookie_buyer17th March, 2004

    Where can I find the LIBOR loans for 95% LTV?

  • swagman3rd April, 2004

    Everybroker ought to have libor based ARM's.
    You might also want to look at COFI, CODI, MTA's and COSI arms as well.

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