Tag Adjustable Rate Mortgages

Tag Adjustable Rate Mortgages

Delaware Adjustable Rate Mortgages

John Thomas July 28, 2008 Tags: , , , , , ,
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Delaware Adjustable Rate Mortgages

Delaware Adjustable Rate Mortgages (ARMs) are mortgage loans with interest rates that can change or adjust.  Delaware ARM loans usually start with lower monthly payments than fixed-rate mortgages because they have a lower “teaser” rate.  With a fixed rate mortgage, the interest rate stays the same during the life of the loan which is the entire term. Call 302-703-0727 to apply for an Adjustable Rate Mortgage or for more information.  You can also APPLY ONLINE

For example, a 30 year fixed rate mortgage has the rate fixed for the entire 30 years.  With an ARM Loan, the mortgage interest rate is only fixed for a set period of time and then changes periodically and payments may go up or down accordingly as the interest rate adjusts. Keep Reading...

LIBOR Index – What is it?

John Thomas July 2, 2007 Tags: , , , ,
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LIBOR Index

LIBOR Index – What is It?

London Inter-Bank Offered Rate (LIBOR)

LIBOR Index is the rate of interest that member banks of the British Bankers’ Association charge when they lend money to one another in the wholesale money markets in London, somewhat similar to our Fed Funds Rate.  In fact, the LIBOR Index tends to closely track the US Fed Funds Rate. LIBOR Index is a standard financial index that is used globally and in US capital markets.  The Wall Street Journal publishes the LIBOR index on a daily basis.

In general, changes in the LIBOR Index have tended to be smaller than changes in the Prime Rate.  There are several LIBOR maturities much like U.S. Treasuries, but the 1-month and 6 month are the most readily used and available LIBOR indexes for mortgage loans.  Although they are becoming increasingly more common in use for consumer loans and ARMs, LIBOR Indices have traditionally been a reference figure for corporate and commercial financial transactions. Keep Reading...