London Inter-Bank Offered Rate -Also known as the LIBOR Index
Libor index based on the rate on mostly, Euro-dollar deposits traded between certain banks in London, England . This popular index is quoted for 1 month, 3 months, and 6 months periods respectfully. The Euro-dollar market has been around for more than fourty years and had become a staple index in the mortgage finance business..
Libor rates are quoted and published in the Wall Street Journal as a rate average from 16 major banks.
We offer 3/1, 5/1, 7/1 & 10/1 Libor ARMs. Select from both conforming & non-conforming loan programs. These popular adjustable rate mortgage are fixed for the 1st three, five, seven or ten years of the term. After the intro-period, the loans are converted to a one year ARM linked to the LIBOR index.
Consumer Price Index Also known as CPI
The consumer price index is an important indicator of the general level of prices. Energy, food and beverages, housing, apparel, transportation, medical care, and entertainment are the components calculated. When the consumer price index rises, it is a sign of an inflationary environment. When people have to pay more for the same level of goods and services, the ond market prices will move down.
Some loan products may not be available in all states. This is not a commitment to lend. Restrictions apply.