Wednesday, September 05, 2007

LIBOR

Did you know that most adjustable rate mortgages are based on the London Interbank Lending Rate? Did you know that the rate has increased almost a full point in just the last 30 days? and almost 1.5% since the spring?

Finally, did you know that almost without exception, ARMs will reset to rate OVER 10%, in many cases as high as 12 or 13%

Inflation is 2-3%......not a bad spread on a secured loan.

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